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Homework answers / question archive / The profit-maximizing/loss-minimizing level of output is determined where MR=MC for: all four industry types
The profit-maximizing/loss-minimizing level of output is determined where MR=MC for: all four industry types. pure competition and monopolistic competition. only pure competition. only regulated monopoly. Question 40 2 pts Graph A Graph B Graph C Graph D AR AR AR-MRI MR MR MR Referencing the above diagram, Graphs A, B, C, and D, respectively, represent which of the following market models? Monopolistic competition, monopoly, oligopoly, and pure competition. Pure competition, oligopoly, monopoly, and monopolistic competition. Oligopoly, pure competition, monopolistic competition, and monopoly. Oligopoly, monopoly, pure competition, and monopolistic competition.
Ques39: option A is correct. The profit maximizing condition for any type of market is determined by the condition MR = MC. Under pure competition MR = AR = P. Hence the condition become P = MC and hence rest all market type has MR = MC as a profit maximizing condition.
Ques40: option D is correct. Under pure competition, firm is a price taker and hence horizontal demand curve. Under Monopoly there is single seller and firm is a price maker and hence downward sloping AR and MR curve. Similarly, in monopolistic no. Of buyer and seller are large and as a result its AR and MR curve are more elastic as compare to Monopoly. In oligopoly, firm faces linked demand curve
