WAEC Economics 2021 Theory — Question 7
Question 7 of 26 from the West African Examinations Council (WAEC) Economics 2021 Theory paper, with the correct answer and a full explanation.
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2(b). In what type of market is the firm operating? Explain your answer.
Model answer
It is a monopoly. This is because Average Revenue (AR) is greater than Marginal Revenue (MR) at most output levels shown in the table — a pattern characteristic of a single seller facing the entire (downward-sloping) market demand curve.
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