Answer to Question #181724 in Microeconomics for Joelle

Question

Consider the following cost and revenue structure for Pristine Tea, a shop that specialiяes in

selling green tea.

 What is the market structure of this question? Monopoly, perfect competition or monopolistic competition. Besides, the profit maximiяing levels of output is 6 and the profit maximiяing levels of price is 9 and my marginal revenue and marginal cost is 9. Can it be allocative efficiency and productive efficiency?

Answer 1

The market structure of this question calls for customers who take tea.The copmpany could be enjoying monopolistic advantage in the situation that its the only kind of business within its vicinity. Hence, customers would have no option but to consume its products only. The given level of profit maximization makes it productive efficiency and allocation efficiency.