1Main ConceptsDefine monopoly & monopolistic competitionMonopoly choice of output and price Efficiency: single-price monopoly vs. competitionPrice discriminationRegulation of monopoliesMonopolyMonopoly Îproduct is differentiated + barriers to entry Firms are price setters
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2Monopoly’s Output and Price DecisionThe monopoly faces:the same types of technology constraints as the competitive firm.a different market constraint. Price setting ÎMR<PSets Q such that MC=MR<PP is determined by the demand curve.A Single-Price Monopoly’s Output and Price Decision