Explain why the the relationship between Marginal revenue and Price differ between perfect competition and monopoly?
Identify a significant effect for pricing strategy of this relationship of P and MR in the 2 markets.
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Explain why the the relationship between Marginal revenue and Price differ between perfect competition and monopoly?
Identify a significant effect for pricing strategy of this relationship of P and MR in the 2 markets.
In perfect competition, price is fixed and independent of the level of production of any given supplier. In the case of a monopoly, the price will vary with the quantity produced.