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Now, is the MR=MC principle only relevant to a monopolist? Indeed, the idea would appear more general than that: any firm should want to price
Now, is the MR=MC principle only relevant to a monopolist? Indeed, the idea would appear more general than that: any firm should want to price where its marginal revenue just covers its marginal cost.
But why, then, do competitive firms price differently thana monopolist does?
Specifically, what is the marginal revenue curve for a competitive firm and how does it differ from that of amonopolist?Remember, as always, to base your answer on your own knowledge,logic, etc.
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