Monopoly Markets Flashcards
1
Q
Point
A
To increase the quantity they sell they must lower price.
2
Q
Imp Point
A
MR < P
3
Q
When is profit maximized?
A
When MR = MC
P> (MR=MC) here
4
Q
Socially Efficient quantity in monopoly
A
Where demand curve intersects marginal cost curve
5
Q
Point
A
Transfer of surplus from consumers to producers and deadweight loss
