3.
In this project, you will fully explain and illustrate the effects of cost and revenue
curves on prices and the levels of production.
Conduct a research on a manufacturing business of your choice and find out the
following:
1. Why is profit maximisation more important than utility maximisation for a
business?
2. Firms use the cost and revenue curves to determine their production levels and
pricing. Examine in detail with the aid of graphs economic profit and normal
Lian also
profit of a firm in a perfect market.
Monopolies are able to influence the market price and enjoy pricing power (price
makers). Discuss in detail the challenges a monopolist will face if excessively
high prices are charged for its products. Provide some examples to support your
Price maka
answer
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