Where to price max econ profit for the monopolist?
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where MR=MC (equalib)
Whats the relationship between MR and demand elasticity?
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When MR < 0, demand is inelastic.
When MR > 0, demand is elastic.
characteristics of monopoly: (4)
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1. only producer and price settler
2. barriers to entry (patents)
3. no close substitutes
4. MR below demand curve
Where does the firm shut down?
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under economic profit, shuts down if P falls below AVC
What if price is greater than average total cost?
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A firm earns an economic profit
What are some reasons Microsoft might be considered a monopoly?
Give this one a try later!
Give this one a try later!
where MR=MC (equalib)
Whats the relationship between MR and demand elasticity?
Give this one a try later!
When MR < 0, demand is inelastic.
When MR > 0, demand is elastic.
characteristics of monopoly: (4)
, Give this one a try later!
1. only producer and price settler
2. barriers to entry (patents)
3. no close substitutes
4. MR below demand curve
Where does the firm shut down?
Give this one a try later!
under economic profit, shuts down if P falls below AVC
What if price is greater than average total cost?
Give this one a try later!
A firm earns an economic profit
What are some reasons Microsoft might be considered a monopoly?
Give this one a try later!
