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Unformatted text preview: are determined by ∂ ∂ ∂ ∂ Π x d p y y dy y x w 1 1 1 =  = ( ( ) ) ∂ ∂ ∂ ∂ Π x d p y y dy y x w 2 2 2 =  = ( ( ) ) . and A Monopolist’s Demands for Inputs That is, MRP x d p y y dy y x MR y MP x w m 1 1 1 1 1 1 ( ) ( ( ) ) ( ) ( ) * * = = × = ∂ ∂ d(p(y)y)/dy = MR(y) < p for all y > 0 so the marginal revenue product curve for a monopolist’s input is lower for all y >0 than is the marginal revenue product curve for a perfectly competitive firm. MRP x d p y y dy y x MR y MP x w m 1 1 2 2 2 2 ( ) ( ( ) ) ( ) ( ) * * = = × = ∂ ∂ A Monopolist’s Demands for Inputs MR y MP x i i ( ) ( ) × p MP x i i × ( ) x i $/input unit w i x i m * x i c * The monopolist demands fewer input units than does the perfectly competitive firm....
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This note was uploaded on 03/03/2011 for the course ECON 206 taught by Professor Ioanadan during the Spring '10 term at University of Toronto.
 Spring '10
 IOANADAN

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