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What is the difference between a monopoly's marginal revenue curve and a perfect competitor's marginal revenue curve? Please explain the difference in these markets by drawing the graphs.

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter23: Profit Maximization

Section: Chapter Questions

Problem 13E

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Concept explainers

Monopoly Market

When a company and its products dominate a sector or an industry, it is termed a monopoly. When a firm and its products control a market, then it is called a monopoly.

Question

What is the difference between a monopoly's marginal revenue curve and a perfect
competitor's marginal revenue curve? Please explain the difference in these markets by
drawing the graphs.

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Step 1: Define Marginal Revenue

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Step 2: Construct the graphs and explain the difference between the MR curves

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