Final review

Final review - Econ 203 Midterm Review No floor subsidy to...

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Econ 203 Midterm Review No floor subsidy to the price, the market is closed, and the monopolies is a price maker. Why did it become a monopoly? Because of barriers. What are barriers or what causes them? Economies of scale. What will the demand curve? The demand curve is sloping doward, why? It looks like the market demand curve. The demand is sloping downward because the lower the price, the more the monopolist will sell. PAGE 193 What are the points of profit maximization? Under pure compition, monopolistic, and something else. Marginal cost= marginal revenue Page 199 Monopolist charging different prices for different commodoities, page 195 Price discrimination What is the meaning of price discrimination? Pg 195 What will happen to the profit and monopoly in the long run? It will disappear because the market is closed (check this to be sure) Pg 202 and pag 203 for the conditions Market segregation-Read up on this. Normal profit case- ATC increases with increased competition Average total cost Price discrimination, what is the difference mainly? Whats the major difference between monopoly? Elascity of demand. Take a look at monopolies. What will happen in the short term to monopolies? Lots more profit in
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Final review - Econ 203 Midterm Review No floor subsidy to...

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