Re: dse 2012

Posted by Granpa Simpson on Jun 12, 2014; 7:36am
URL: http://discussion-forum.276.s1.nabble.com/dse-2012-tp7592423p7592469.html

The monopoly equilibrium depends on the intersection of the MR and MC curves..in this case MR curve remains the same as the demand curve does not change, the only difference is that MC shifts and point of intersection changes here MR is not equal to MC1+MC2, MC=MC1+MC2, when you are saying that MR=MC1+MC2 it means that the MR will also change..in this case MR wont change, the change will be occur only for the MC curve and hence the point of intersection will change..!!!