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Short run consumers - PowerPoint PPT Presentation

Topic 3: Monopoly firm

Topic 3: Monopoly firm. Price/quantity decision. Constrained by a demand function (Figure 4.1 on page 90 of CP) MR=MC ( calculus in class; graph in Figure 4.2 on page 91 of CP) Monopoly power depends on the demand elasticity; the mark-up concept (derivation in class; content on page 92)

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Short run consumers - PowerPoint PPT Presentation

Topic 3: Monopoly firm