Monopoly

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  • Created by: meloakes
  • Created on: 29-03-15 11:35
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  • Monopoly: A single firm in a market
    • High barriers to entry to control the market
      • They make Supernormal profits in the LR.
        • Operates at MC=MR
          • Monopoly: A single firm in a market
            • High barriers to entry to control the market
              • They make Supernormal profits in the LR.
                • Operates at MC=MR
              • They have a downwards sloping demand curve - decided price or quantity
              • Not productively efficient (not at lowest AC point)
              • Not electively efficient (P is higher than MC)
      • They have a downwards sloping demand curve - decided price or quantity
      • Not productively efficient (not at lowest AC point)
      • Not electively efficient (P is higher than MC)

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