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MONOPOLY - Coggle Diagram
MONOPOLY
Price maximisation
Monopoly revenue
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The output effect - more output is sold, so quantity is higher
The price effect - price falls, so price is lower
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Profit maximisation
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For competitive firm, P = MR=MC
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Price discrimination
Business practice of selling the same good at different prices to different customers, even though the costs for producing for the two customer are the same
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Characteristics
Natural monopoly
When single firm can supply a good or service to an entire market at a smaller cost than could two or more firms
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