lecture 17 notes

lecture 17 notes - Price makers/searchers No close...

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The theory of Monopoly What is a market? Demand curve Tells about price, because the firm prices off of the demand Tells us TR Ells us about supply MR=MC occurs at optimal output Q AC tells us about profits AVC tells about shutdown point Monopoly One seller in the market Power comes from the ability to control price
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Unformatted text preview: Price makers/searchers No close substitutes BARRIERS They like inelastic demand curves ( but try not to price there ) They like restricted entry (who wouldn’t) Their economic power is a matter of degree MR of a Downward sloping Demand Curve Cartelmeister takes over competitive market...
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This note was uploaded on 04/20/2008 for the course ECON 201 taught by Professor Williams during the Fall '08 term at UVA.

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lecture 17 notes - Price makers/searchers No close...

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