Florida girl's death brings to light tonsillectomy risks. September 23, 2010|By Lorri Helfand and Letitia Stein, St. Petersburg Times. The recent death of a seemingly healthy, 12-year-old Pinellas County girl following a tonsillectomy may have many parents worried about one of the most common surgical procedures performed in children.
In a perfectly competitive market price is equal to marginal revenue. Price will also equal average cost. If price was greater than average cost the firms in the market would be making profit. This would lead to more firms entering (remember no barriers to entry) until profits are eliminated.
A firm would not produce an additional unit of output with negative marginal revenue. And, assuming that the production of an additional unit has some cost, a firm would not produce the extra unit if it has zero marginal revenue.Because a monopoly firm will generally operate where marginal revenue is positive, we see once again that it will operate in the elastic range of its demand curve. To maximize profit or minimize losses, a monopoly firm produces the quantity at which marginal cost equals marginal revenue. 2  Its price is given by the point on the demand curve that corresponds to this quantity.