If the Firm A is having a monopoly in the production of X we can assume that the Firm A is producing at a level of output which is marginal cost equals marginal revenue.
What is a monopoly?
This is a situation that exists in a market where there is a single producer or seller of a product. The monopolist has no competitors.
Due to this he enjoys unfair advantages and can set the price in the market to any level that he wants.
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