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A transistor manufacturer is producing 2.1 million transistors and sells them for $0.08 each. At this level of output, marginal revenue is $0.08. From this
A transistor manufacturer is producing 2.1 million transistors and sells them for $0.08 each. At this level of output, marginal revenue is $0.08. From this information, would you conclude that the transistors manufacturer is a competitive firm or a monopolist? Why? The transistors manufacturer is a monopolist because 2.1 million transistors is a sufficiently large quantity that it likely dominates the market for transistors. The transistors manufacturer is a competitive firm because price is equal to marginal revenue. The transistors manufacturer is a monopolist because price is equal to marginal revenue. The transistors manufacturer is a competitive firm because a monopolist would never sell a product for the low price of $0.08
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