a regulated monopoly is likely to suffer losses when ______.

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22-11-2022
Social Studies

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a regulated monopoly is likely to suffer losses when ______.

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vtamit3 vtamit3 · Answer 1 · 2022-12-01T07:20:38+01:00

A regulated monopoly is likely to suffer losses when price is set to marginal cost (P = MC) and achieve the most efficient allocation of resources.

What is the meaning of the term “marginal cost”?

The price to create a new unit of production is its marginal cost. It is a crucial idea in cost accounting because marginal cost aids in identifying the level of production that is most effective for a manufacturing process. It is estimated by figuring up what costs would be spent even if only one more unit were produced.

When talk about the marginal cost, are talking about the rise in production costs brought on by the creation of more product units. The marginal cost of manufacturing is another name for it.

Learn more about marginal cost from here:

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