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Manufacturers are not interest in maximising their social benefit: they want to maximise their profit and this is done by producing fewer items but at a higher
by jsmith99 5y ago
Manufacturers are not interest in maximising their social benefit: they want to maximise their profit and this is done by producing fewer items but at a higher price (to be technical, a monopoly would produce until marginal revenue = marginal cost).
Manufacturers can set recommended retail prices but their are limitations to how these can be enforced.