In a perfectly competitive market, this producer will lose the profit margin in the short run, and might have to go out of the market in the long run. Price is set by the market. Producers cannot raise price. But in the case of monopolist, when cost rises, the monopolist will raise price.
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economics help me please!!?
- Thread starter daviline
- Start date
In a perfectly competitive market, this producer will lose the profit margin in the short run, and might have to go out of the market in the long run. Price is set by the market. Producers cannot raise price. But in the case of monopolist, when cost rises, the monopolist will raise price.
In a perfectly competitive market, this producer will lose the profit margin in the short run, and might have to go out of the market in the long run. Price is set by the market. Producers cannot raise price. But in the case of monopolist, when cost rises, the monopolist will raise price.
One of the effects is that the price of the product or products being produced will go up and maybe because of that some people are going to stop buying the product or products or buy less of it . i read somewhere recently that the price of a mars candy bar went up by 26% approximately one year ago and that recently the comapany is making that candy bar 17% smaller to cut down on production costs all due to the fact the the price of cacao went up and they use cacao for the chocolate that they put in their candy bar. I hope these words are helpfull to you. MAY GOD BLESS YOU AND YOURS INFINITELY AND MAY GOD BLESS THE U.S.A. INFINITELY.
In a perfectly competitive market, this producer will lose the profit margin in the short run, and might have to go out of the market in the long run. Price is set by the market. Producers cannot raise price. But in the case of monopolist, when cost rises, the monopolist will raise price.