ECON 2030 Lecture Notes - Price Discrimination, National Order Of Quebec, Perfect Competition
Document Summary
Today"s menu: tuesday 24 june 2014: business, practice problems, chapter 14: 1-4, 7-10, 12, 13, chapter 8: 2, 3, 5, 9-11, 23, second exam: this thursday. The high barriers to entry will keep new firms from coming in. Other barriers develop naturally: causes, implications because of the high barriers of entry if a monopolist is earning a positive economic profit in the short run, in the long run, his economic profits will be positive. Monopsonies = 1 buyer sellers compete against one another to get that one buyer"s business. The mopolist has to answer how much to produce and what price to charge in order to maximize profits. You produce as much quantity to = mc mr = mc. Just like in perfect competition, and able to pay for the good. there are 4 possibilities (see 06. 23. 14 lecture: firm behavior in the long run business.
