40 whic hof the feller angst ng na duce before anct after be

40 whic hof the feller angst ng na duce- before anct after becomi als na resenue(MB) Is less an pe atter beo nans Price equals marginal revenue bame lesel ot autput hel and atte becoming a monapay ?The producer ci\" produc e the beFort a monop rice rage

Solution

Answer 1:

a. Option 4 and option 6. price equals marginal revenue before becoming a monopoly as price is equal to marginal revenue and marginal cost in case of perfectly competitive market. Also, the producer will produce the efficient level of output only before a monopoly in case of perfeclty competitive markets where price is equal to marginal cost of production.

b. Price and Average Revenue. In case of perfeclty competitive markets, marginal revenue is equal to price and is also equal to average revenue.