ECON 1110 Unit 3 Lecture Notes - -In competitive market, P=...

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Chapter 15 Monopolies vs Competitive Markets - Monopoly o Sole producer o Downward sloping demand curve o Price maker o Reduces price to increase sales - Competitive Firms o One of many producers o Facers horizontal demand curve o Price taker o Sells as much or little at same price - No such thing as a supply curve for monopolists - Monopolist has power to set price, and price will be related to output they will produce
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Unformatted text preview: -In competitive market, P= MR; maximization of profit is when MC=MR (P)-However, in monopoly P > MR-In Competitive firm, profits told other entrepreneurs to come into market and make profit 0 in long run-In Monopoly, monopolist keeps profits...
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This note was uploaded on 12/13/2010 for the course ECON 1110 at Cornell University (Engineering School).

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