Downward sloping, relatively elastic.
P MR MC AC, a firm profit should produce additional units as competition long as its marginal revenue is greater monopoly or equal to its marginal cost.
Firms have total market share, profit which creates difficult entry profit and exit points.
Every firm offer products to customers at its own price.As the product offered for sale is identical in all respects, no firm can increase the price than that of prevailing in the market, because if a firm increases its price, then it will profit lose competition all the demand, to the competitors.Entry and Exit, no barrier.But, a monopoly wants to maximize profits, not revenues.Unlike a monopolistic market, firms in a perfectly competitive market have a small market share.In perfect competition, the product offered is standardised whereas in monopolistic competition product differentiation is there.In the real world, no market is purely monopolistic or perfectly competitive. Product, standardized, differentiated, price, determined by demand and supply forces, for the whole industry.
Therefore, a profit-maximizing monopoly chooses an output level where.
Marginal revenue Marginal costs monopoly (MR MC).In the article provided to you, weve simplified the differences between perfect competition and monopolistic perfect competition.To increase sales the firm has to lower down its price.A monopolistic point market and a perfectly perfect competitive market are two market structures that have several key distinctions, such as market share, price control, perfect chaudhry and barriers to entry.The principal difference between these two is that in the case of perfect competition the firms are price takers, whereas in monopolistic competition the firms are price makers.The sources of a monopoly power could competition be big sunk costs, patents, trade secrets perfect (Coca-Cola regulations, or simply a natural monopoly due to economies of scales (railways).In monopolistic competition, there are many producers and consumers in the marketplace, and all firms only have a degree of market control, whereas a monopolist in a monopolistic market has total control of the market.Perfect competition, in a perfectly competitive industry, all firms are price takers and this means they cannot control the market price of their product.If oligopolies collude successfully, they will set price and output such that.MP (Average revenue Quantity) (Average total cost Quantity).
On the other hand, in monopolistic competition, the demand curve is downward sloping which represents the relatively elastic monopoly vs perfect competition profit demand.
You could also simply think of an oligopoly as a hybrid between a perfectly competitive market and a monopolistic market.