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Chapter 4

Economics

Can anyone explain the below point?

Soumya A

CA Inter

★ 20K+

25-Nov-21 23:11

278

Answers (3)

It is a point under the difference between perfect competition, monopoly,monopolistic competition

Thread Starter

Soumya A

CA Inter

★ 20K+

25-Nov-21 23:17

In perfect competition every sellers sell their product at uniform price which is fixed by the market forces demand and supplyâ?¦so every unit of a product is sell at uniform price that's why price is equal to marginal cost in a perfect competition. Under monopoly, marginal cost = marginal revenue; but marginal revenue is less than price, therefore marginal cost is less than price. In other words, price is greater than marginal cost.

Sudha Reddy

CA Final

★ 20K+

26-Nov-21 10:14

Sudha Reddy

In perfect competition every sellers sell their product at uniform price which is fixed by the market forces demand and supplyâ?¦so every unit of a product is sell at uniform price that's why price is equal to marginal cost in a perfect competition. Under monopoly, marginal cost = marginal revenue; but marginal revenue is less than price, therefore marginal cost is less than price. In other words, price is greater than marginal cost.

Thank you ma'am

Thread Starter

Soumya A

CA Inter

★ 20K+

26-Nov-21 11:55

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Chapter 4

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