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imperfect market (to increase profit (MC=MR (is a good sign) (less…
imperfect market
to increase profit
increase price
increase qty
less production more profit
MC=MR (is a good sign)
less expenditure control cost
characteristics of monopoly
single firm
price setter
no close substitute is available
block entry
monopoly
one product with one person
no competitors
state has monopoly to form the constitution
kinds of imperfect market.
monopoly
oligopoly
regulator.
disciplined
effectiveness of rules
in case of loss
price is below
super normal profit
price is greater than average total cost
maintain equilibrium where revenues is increasing
it is never ideal.
resources, time and money create imbalance
contracting
information flood
competition exist
entry of new firms is restricted
not aware of market position
buyers and sellers are small in numbers.
different products of same substitutions are sold.
market is the market of credit