Unformatted text preview: , DECREASE PRODUTION! I.A.1.a. If marginal cost is below marginal revenue, you should increase production because total profit will rise. MR > MC, INCREASE PRODUCTION! I.A.1.a. If marginal revenue is equal to marginal cost, it does not make sense to increase or reduce production. MC = MR, MAX PROFIT! I.A.1. The Price of a Monopolist Will Charge I.A.1.a. Quantity determines the price. You can see this by examining the demand curve. I.A. Comparing Monopoly and Perfect Competition I.B. An Example of Finding Output and Price I. Profits and Monopoly I.A. A Monopolist Making Profit I.B. A Monopolist Breaking Even and Making a Loss I. The Welfare Loss from Monopoly I. The Price-Discriminating Monopolist I. Barriers to Entry and Monopoly I.A. Natural Ability I.B. Economies of Scale I.C. Government Created Monopolies I. Normative Views of Monopoly I. Government Policy and Monopoly: AIDS Drugs...
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This note was uploaded on 10/25/2011 for the course ECON 2030 taught by Professor Russel during the Spring '11 term at LSU Health Sciences Center.
- Spring '11