下载亿题库APP
联系电话:400-660-1360
请谨慎保管和记忆你的密码,以免泄露和丢失
请谨慎保管和记忆你的密码,以免泄露和丢失
Factors Affecting Long-Run Equilibrium in Monopoly Markets
The unregulated monopoly market structure can produce economic profits in the long run. In order to maintain a monopoly market position in the long run, the firm must be protected by substantial and ongoing barriers to entry.
For regulated monopolies, such as natural monopolies,
1 Set the price P = MC. If P < AC, subsidy
2 National ownership of the monopoly. Problem: once a price is established, consumers are unwilling to accept price increases.
3 Establish a governmental entity that regulates an authorized monopoly. PR = LRAC. Investors receive a normal return for the risk they are taking in the market.
4 Franchise the monopolistic firm through a bidding war. Goal: P = LRAC
Short-Run Equilibrium in Monopolistic Competition:π = TR – TC
Short- and Long-Run Cost Curves:Short-“and Long-Run Cost Curves”cost SATC curve and a corresponding long-runaverage total cost LRAC curve.
Long-Run Equilibrium in Perfectly Competitive Markets:Long-Run Equilibrium:Thelong-run:marginal costschedule is the perfectly competitive firm’s:supply curve.:A.The long-run competitiveso new companies will enter the market.
微信扫码关注公众号
获取更多考试热门资料