What are the four most important ways a firm becomes a monopoly? Will a monopoly that maximizes profit also be maximizing revenue? Will it be maximizing output? Explain.
What are the four most important ways a firm becomes a monopoly? Will a monopoly that maximizes profit also be maximizing revenue? Will it be maximizing output? Explain.
Chapter1: Making Economics Decisions
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What are the four most important ways a firm becomes a monopoly ? Will a monopoly that maximizes profit also be maximizing revenue? Will it be maximizing output? Explain.
Assume the graph below represents the market for a monopolist. What quantity will the monopolist produce, and what price will she charge? What will her total revenue, costs, and profit be at this level of production? What will the deadweight loss for society be at this level of production? (Assume the MC curve is a straight line between the relevant points for this calculation.)
3. U.S. antitrust laws are designed to prohibit monopolization and encourage competition. Why, then, does the government erect barriers to entry and create monopoly power by granting firms patents?
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Step 1
Monopoly is a market where a solitary dealer controls the whole inventory of an item. It is said to exist when one firm is the sole maker or merchant of an item which has no nearby substitutes. Since a solitary vendor controls the whole inventory, the market is the invalidation of rivalry. The development of monopoly is brought about by the accompanying elements.
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