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EC2001 - Intermediate Microeconomics > Monopoly > Flashcards

Flashcards in Monopoly Deck (4)
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What is a monopoly

one firm operates in the market


What does the inverse market demand determine?

it determines the price at which monopolist is able to sell


At what elasticity will the monopolist produce?

the monopolist will always produce y* such that |Ed| ≥ 1 (elastic demand)


When will the monopolist sell?

Monopolist will always sell at a price ≥ competitive price and p =competitive price when MC = 0... MC = P