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Price in a perfectly competitive industry: Suppose

Question : Price in a perfectly competitive industry: Suppose : 4127

Price in a perfectly competitive industry:

Suppose that a profit-maximizing monopoly firm undergoes a substantial technological change that reduces its marginal and average total costs by $40. If in response to its reduction in cost the firm changes its price in a profit-maximizing way, then we can predict that its total economic profit will:

 

is always equal to marginal revenue for the firm.

 

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Finance 1 Year Ago 98 Views
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