Please I need help with this question Thanks Define and expl

Please I need help with this question, Thanks.

Define and explain (calculation) of Price and marginal Revenue for a Monopoly

Solution

The monopoly the profit maximzation condition is where the marginal cost equals the marginal revenue and the firm uses the demand curve to find the price that induces the consumers to buy the product. The marginal revenue is the additional revenue gained from producing an additional unit of the commodity. And it is caclulated by dividing the change in total revenue by the change in quantity. In a monopoly the price will be greater than the marginal revenue this is because the monopoly firm has to reduce the price for selling more units of the commodity. The monopoly is the price maker so it can charge any price the firms want usually these firms charges a price above the marginal cost. In a perfectly competitive market the firm\'s price is equal to the marginal cost but the monopoly price will be above the marginal cost.