Economics 1021A/B Chapter Notes - Chapter 13: Monopoly Price, Marginal Revenue, Price Discrimination

• School: Western University
• Department: Economics
• Course: Economics 1021A/B
• Professor: Emilie Rivers

Document Summary

That produces a good service for which no close substitute exists. Public franchise canada post, first class mail. Patent or copyright government identify inventor of intellectual property. Single price monopoly a firm that must sell each unit of its output for the same price to all its customers. Price discrimination practice of selling different units of a good or service for different prices. A monopoly is a price setter: demand for the monopoly"s output is market demand, to sell more output, a monopoly has to lower it"s price. Mr = change in total revenue that results form a one unit increase in the quantity sold. For a single price monopoly, marginal revenue is less than price at each level of output, mr