Answer to Question #59197 in Microeconomics for Albert
(a) What are four basic differences on pricing, risk, and premium
(b) Which one is better on:
- Efficiency ground and
- Equity ground
(a) In case of monopoly he can set the price he want, there is almost no risk and the profits are the highest possible, if he produces profit-maximizing quantity. In case of oligopoly he can't set the price that he want, the risk is higher and the ability of receiving profits depends on his and his competitors price strategies.
(b) Efficiency ground is better then equity ground.
Need a fast expert's response?Submit order
and get a quick answer at the best price
for any assignment or question with DETAILED EXPLANATIONS!