Assertion: oligopoly's price | /r/HasProperty | above marginal cost
Facets:
value: at this quantity
type: OTHER
value: under perfect competition
type: OTHER
Source sentences:
text: Under perfect competition, prices are just above marginal cost, leaving firms with small profits.
text: This pricing decision leads to the result that the collusive price is way above the marginal costs at this quantity, so maximising the profit of the single companies to be as the maximised profit in the perfect competitive market (Bresnahan, 1987).
text: Another way to see this inefficiency is that the monopoly always chooses a price that is above marginal cost.
text: Because price is above marginal cost, selling one unit more at the going price will raise profit
text: In this extreme case, each firm in the oligopoly increases production as long as price is above marginal cost.