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A fidget spinner manufacturer is producing 10,000 spinners and sells them for $2.75 each. At this level of output, marginal revenue is $2.75. From this
A fidget spinner manufacturer is producing 10,000 spinners and sells them for $2.75 each. At this level of output, marginal revenue is $2.75. From this information, would you conclude that the fidget spinner manufacturer is a competitive firm or a monopolist? Why? The fidget spinner manufacturer is a monopolist because 10,000 spinners is a sufficiently large quantity that it likely dominates the market for fidget spinners. The fidget spinner manufacturer is a competitive firm because price is equal to marginal revenue. The fidget spinner manufacturer is a monopolist because price is equal to marginal revenue. The fidget spinner manufacturer is a competitive firm because a monopolist would never sell a product for the low price of $2.75
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