monopolistic competation revised.docx

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Running head: PURE MONOPOLY MARKET 1 Pure Monopoly Market Students Name Institution Affiliation
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PURE MONOPOLY MARKET 2 I do business with American Water Works Company Intl. This is the only company that supplies water to all entities in the United States ("Home | American Water Works Association", 2019). There is a legal barrier to entry in this market since the entry requires the approval of United States water market regulators. Also, the regulation stipulates that water can only be supplied by one public water body. Therefore, this is a pure monopoly market. The firm demand curve is relatively elastic. The monopolistic competition aims in maximizing the profit. Therefore, they must produce at a point where there is equality between marginal revenue and marginal cost. This implies that any monopoly can maximize profit using
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