EBK ESSENTIALS OF ECONOMICS
EBK ESSENTIALS OF ECONOMICS
4th Edition
ISBN: 8220103647380
Author: KRUGMAN
Publisher: MAC HIGHER
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Chapter 7, Problem 2P
To determine

Concept Introduction:

Perfect Competition: This is a situation that prevails in the market where there are numerous buyers and sellers. When a market is in perfect competition, the price of a product cannot be influenced by a single buyer or seller.

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Because the monopolist is a single seller of a product with no close substitutes, can it obtain any price for its good that it wants? Why or why not?
Explain why price is greater than marginal revenue for a single-price monopolist and how this differs from perfect competition.
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