IMG_0003_NEW_0012 - monopoly profits' A successtul...

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But do monoPolists have more incentive to innovate? o lhere are two effects that reduce the monopolist's incentive to innovate: . Sunl cost effect: remember? . Replacement effect tl <---> A successful innol ation on the part of a monopolisl will lead to greater
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Unformatted text preview: monopoly profits' A successtul il.noration 6y a new entrant could lead to a mouopolv irthe same market' The netrt entrant *Ja'o&quot;i:r *ot from innovation (0 profits to-.t&quot;ir&quot; oi.tits) than the monopolist (monopoly profiGto more monoPoly Profits)'...
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This note was uploaded on 12/29/2011 for the course ECON 6 taught by Professor Dianne during the Fall '10 term at Simon Fraser.

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