Thisdiagramshowsthatmonopolyprofitsdependontherelationshipbetweenthedemandandaveragecostcurves.Profitispositiveifmarketpriceexceedsaveragetotalcosts,butifpriceislowerthanaveragecosts,thenamonopolistcanoperateonlyatalongtermloss.ResourceAllocationandWelfare Aperfectlycompetitiveindustrywillstrivetoallocatetheirresourcesefficiently...
This diagram first appeared in her book, The Economics of Imperfect Competition, published in 1933 when she was just 30 years old. You can learn more about Joan Robinson at /het/profiles/robinson.htm (or use the link on the Economics Place Web site). Women are still not attracted to ...
* * * * The classic monopoly diagram The classic monopoly diagram, Figure 13.4(b) provides a good opportunity to tell your students about the contribution of one of the most brilliant economists of the 20th century, Joan Robinson. This diagram first appeared in her book, The Economics of ...
Explain why a monopolist can increase profits by practicing price discrimination compared with using a single price to maximize profits. What are the different kinds of price discrimination? What a Can you use a diagram to explain why a monopoly, when comp...
What happens to a monopoly if a lower-cost firm enters the market? Explain with reference to a diagram. How do a monopoly lump sum profits tax and a monopoly sales tax differ in their effects on the monopolist? Explain why a competitive market...