The MR curve of a perfectly competitive firm is horizontal. The MR curve of a...
50.1K
Verified Solution
Link Copied!
Question
Accounting
The MR curve of a perfectly competitive firm is horizontal. The MR curve of a monopoly firm is: upward sloping. it depends. downward sloping. horizontal, too. downward sloping, whereas that focing the purely competitive firm is perfectly elastic perfectly elastic, whereas that facing the purefy eompottive firm is perfoctly inelaste downward sloping, whereas that facing the purely competitive firm is perfoctly inelastic perfectly inelastic, whereas that facing the purely competuve form is perfectly elastic. b. Why does it differ? Of what significance is the difference? The demand curve facing a pure monopolist is downsloping, because the firm's supply is so small a port of the total indintry supply that it cannot affect the price. purely competitive firm is perfectly elostic, because it moy sell all that it whthes at the equibrim grice pure monopolist is perfectly inelostic, because a pure monopolist may choose any desired price and cuanty combination. purely competitive firm is downstoping, because the purely competitve firm is faced by a nornst, downward-voping industry demand curve. c. Complete the following statement. The pure monopolsts demand curve is not perfectly inelastic, because MR
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
