ECON 22060 Lecture Notes - Lecture 14: Demand Curve, Natural Monopoly
6 Mar 2018
School
Department
Course
Professor
Document Summary
Cant have more than 1 walmsrt in a town. Need to make lots and lots and lots of stuff. Put your price really low so other people cant comepter. Price can be thought of as the invidual demand curve. Each firm only serves a small part of the larger market. Basicly supply and demand on an indviual level. Small firms sell as many units as they can produce. To sell more they must cut the price. Will max out- sell to everyone at 20$ Will make more money over all, more units sold at a lower price. Must choose the price and quanity to maximize prodtis. Now we can do all the same things as the other graph. The (cid:272)ost are the sa(cid:373)e it"s the how we get to those the (cid:374)u(cid:373)(cid:271)ers. Likely they will make positive profits but not garneted econ page 1. Likely they will make positive profits but not garneted.
