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Additional units of output than the unit costs to produce

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Reference no: EM131392341

a- When a single-price monopolist maximizes profits, price is greater than marginal cost. This means that buyers would be willing to pay more for additional units of output than the unit costs to produce. Given this, why doesn’t the monopolist produce more goods?

b- Explain why a monopoly is a price searcher and a perfectly competitive firm is a price taker.

Reference no: EM131392341

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