Part : Pure monopoly

Smartbook 10 and quiz 10

since single firm is the sole produced the firm and industry are..

synonymous

5 characteristics

Single seller

No close sub

Price maker

Blocked entry

non-price competition

3 assumptions economists make when studying the pure monopoly

Status secured by patents,economies of scalre,resource ownership

No unit of government regulates the firm

Monopolist is a non-price firm

How does a monopolist change the price of its product

By chaning the quantity of the product it produces

Eskom is a monopolist frim that sells standardized product (gas for electricity) how do they get their product across

Public relations advertising

Whats the differnce between pure monopolist and perfectly competitive seller in terms of curves

The demand curve

• PM=Downward sloping demand curve

• PC= Perfectly elastic demand curve

• shapes have impact on profit

For pure monoply,demnad curve for the firm is also the demand curve for the

Industry

Pure monopolists have fixed downward sloping curves,how can they increase sales

By charging lower prices

When marginal revenue is …. total revenue is falling

negative

Why is MR lower than price in imperfect market(+except for which unit )

And what is MR

The first unit

THE CHANGE IN TOTAL REVENUE

What decsion should imperfect competitors make to influnce the market supply

output decisions

True/false

MC curve represents the supply curve for a monopolist firm

The economic profit for a monopolist can be calculated by multiplying the difference between profit-maximising

In pure competition indutry demand curve is infinitely price elastic

Where are total costs minimized