List out the Similarities of Perfect Competition and Monopoly.
1 Answer
The following are the major similarities between perfect competition and monopoly:
- Goal: Under both market structures, the goal of the firm is to maximize profit.
- Equilibrium condition: Under both market structures, MC = MR gives equilibrium of the firm, and the slop of MC is greater than the slope of MR curves at the equilibrium point.
- Cost function: Due to the operation of law of diminishing returns, AC and MC curves under both structures are U-shaped.
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Write the meaning of various concepts of cost. Explain them. 1
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Explain the meaning and nature of total variable cost along with diagram 1
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Explain the meaning and nature of total cost along with diagram 1
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Differences between total fixed cost and total variable cost 1
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Differences between a Movement along and Shift in the Demand curve. 1
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Differences between Movement along a supply curve and shift in the supply curve 1