Because is the only supply a certain merchandise, exclusive home opposite the street market, and the market tends to slope downwards from left to right. Other than a business competition must accept the market price, is the exclusive home valuation. In fact, the exclusive home can choose to produce at any one level of any output on the market, exclusive home song will have to swap between the number of products and prices. Exclusive home provides as much then prices will decrease. Figure 6.2 describe the trade-off between price and output of an exclusive business. If the business produces q1, relatively low, at that time based on road bridges, businesses can plan to sale price for his product in P1, relatively high. In contrast, when businesses more productive, q2, enterprise are lower priced, P2. That means providers can only decide or is the number of products sold or is price.In this chapter, we assume is the exclusive home to select the output level do maximize profits. Consequently, the exclusive home put MR = MC to choose the optimal output q * and through which indirectly decide the prices of products based on the shape of the bridge.
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