Using appropriate graphs, consider the implications, for both a perfectly competitive market and a monopoly, if the marginal cost of production falls. Given your conclusions, would it always be true to say that monopoly is never in the best interests of the consumer? 

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Lets first consider the implications of a fall in marginal cost MC for both a perfectly competitive market and a monopoly 1 Perfectly Competitive Market In a perfectly competitive market many firms co... View the full answer