Question

Please answer all.

84. Explain why marginal revenue is less than price for a monopolist.

85.   What are the reasons for preferring competition to monopoly?

Answer 1

1. The increase in overall revenue arising from a difference in the amount of production sold, Marginal revenue indicates how much additional revenue a monopoly gets by selling an additional unit of production. This is calculated by measuring the increase in overall revenue by the difference in production quantity. Marginal revenue is the extra revenue produced when a monopoly sells one additional production unit.
The marginal revenue in a monopoly is lower than the price, since the demand curve is sloping downward. When prices go down, more units of the product are bought. Because of this, marginal revenue will not always equal price.

2. This is safer for customers, since at a cheaper price they would have access to more amounts of the good.
Competition is the foundation of American economic policies. Advocacy for the market is now flourishing globally. Promoting competition is broadly accepted as the best available tool for promoting consumer well-being. Competition regulators, who frequently seek to shield the public from anti-competitive special interest laws, are justifiably jaded by concerns of unfair competition.