Answer to Question #75980 in Microeconomics for Sizakele

Question #75980
Ab limited is a sole manufacturer and supplier of a solar panels in the country. As a result of this the CEO claimed in a recent meeting that he can set any price as he wishes and sell as many units of his products as he wants at that price. Is this correct.?motivate your answer
1
Expert's answer
2018-04-13T09:43:12-0400
Ab limited has no competitors in the industry. Therefore, the company is a monopolist. The firm can affect prices, and quantity supplied but not infinitely. Ab depends on the wealth of the population and production expenses. A monopolist maximizes profit when its marginal costs are equal to marginal revenue. An intersection of two curves (MC and MR) defines the optimal quantity and price for Ab limited.

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!

Comments

No comments. Be the first!

Leave a comment

Ask Your question

LATEST TUTORIALS
New on Blog
APPROVED BY CLIENTS