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Pricing strategies

Provide detailed analysis of pricing strategies specifically related to each type of market structures:

Perfect competition
Monopolistic Competition
Oligopoly
Monopoly

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Provide detailed analysis of pricing strategies specifically related to each type of market structures:
Perfect competition:
In a perfect competition, the firm is a price taker. This means that the firm can sell as much as it want at the market price. The demand curve is a horizontal straight line. So for an individual firm the pricing strategy is to accept the prevailing price in the market. What the seller can change is its output. Usually, the seller will sell that quantity of output where the marginal cost equals the marginal revenue (price). The sellers do not have the power to set prices.
Monopolistic Competition
In a monopolistic competition during the short run equilibrium of the firm the firm maximizes its profits and produces a quantity where its profits and produces a quantity where the firm's marginal revenue is equal to marginal cost. The firm is able to collect price based on the difference between the average revenue curve and the average ...

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