A firm has monopoly control over a market It exercised a policy of selling its product at a price - Economics - The Theory of The Firm Under Perfect Competition

Question

A firm has monopoly control over a market It exercised a policy of
selling its product at a price decided by it However at the end of
the year, it observed that it sales had been low compared to what
it had planned What is the reason behind low performance of the
firm?

Prince Verma · Accepted Answer

A monopolist sets the price of his product in such a manner that he
can capture maximum of the consumer's surplus, or the willingness
of the consumer to pay for his good In the given case, low
performance is the result of no studying the consumer's surplus
prior to the pricing of the product

A firm has monopoly control over a market. It exercised a policy of selling its product at a price decided by it. However at the end of the year, it observed that it sales had been low compared to what it had planned. What is the reason behind low performance of the firm?