{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

IMG_0003_NEW_0012 - monopoly profits A successtul...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
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 monopoly
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

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"i:r *ot from innovation (0 profits to-.t"ir" oi.tits) than the monopolist (monopoly profiGto more monoPoly Profits)'...
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online