6 PPT_Noncompetitive_Behavior

6 PPT_Noncompetitive_Behavior - demand range. Examples:...

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Market Failures III. Noncompetitive Behavior
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Review of Monopoly P Q
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Algebra Inverse Demand: P = a – b·Q Revenue = P ·Q = a ·Q - b ·Q 2
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Profit Maximizing Point for the Monopolist P Q
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Natural Monopolist Definition: A natural monopoly situation occurs when the fixed costs of providing a good are very large relative to MC, so that AC is decreasing over the relevant
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Unformatted text preview: demand range. Examples: Effect on Market Structure: Competition P Q MC D Result Effect on Market Structure: Monopoly P Q MC D Regulation: AC Pricing P Q MC D Other Possible Government Responses The govt could build and own the bridge and contract out to a bridge operator, with the regulation that it charges P = MC....
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6 PPT_Noncompetitive_Behavior - demand range. Examples:...

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