econ203 finalReview Notes spr08

econ203 finalReview Notes spr08 - Chapter 10 Monopoly * 4...

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Chapter 10 Monopoly * 4 question about monopoly * what are the major characteristics of monopoly? * why d curve slopes down? The more you sell, he must reduce price. Therefore another curve develops called the MR. so profit maximized when mc intercepts mr * characteristics include 1) single seller, 2) market is open, 3) no close substitution for product, so unique product, eg; water, natural gas, 4) monopolist is a price maker, * what will be the d curve? * how do you compare it w/ monopolistic competition ? Horizontal b/c fixed by market * so what will be the shape of D curve compared with monopolistic competition * economic barriers-- economic border-- formed b/c of economies of scale * what is economies of scale? How are they developed? Technology, innovation, top management, top skills, inventions, etc-- all these things make barrier * monopolies develop b/c of economies of scale * pg 202, emphasis on barriers to entry * pg 191 demand curve??? * economies of scale 190-191???
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econ203 finalReview Notes spr08 - Chapter 10 Monopoly * 4...

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