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Unformatted text preview: curve (which corresponds to the market equilibrium price) . x (A monopolist faces the downward-sloping market demand curve) . x Each household has a downward sloping demand curve, but: o price is determined by market supply and demand o so shifts of one firms’s supply curve do not affect the market price x Each firm faces infinitely elastic (horizontal) demand market-level view Q M p S M D M comp. firm’s view Q F p S=MC D p* Page 108...
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This note was uploaded on 12/29/2011 for the course ECO 311 taught by Professor Willis during the Fall '10 term at SUNY Stony Brook.
- Fall '10