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EC2001 - Intermediate Microeconomics > Monopoly > Flashcards

Flashcards in Monopoly Deck (4)
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1

What is a monopoly

one firm operates in the market

2

What does the inverse market demand determine?

it determines the price at which monopolist is able to sell

3

At what elasticity will the monopolist produce?

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

4

When will the monopolist sell?

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