Abstract
In this chapter we model the same firm as we saw in the problem of the previous chapter but with new management. The firm is now a monopoly, meaning that it can adjust its output and selling price to maximize its profit. This situation means that the profits will be higher than was the case with the competitive firm in this market and the output will be lower.
Monopoly, that is, exclusion of customers, has certainly no tendency to produce increase of the number of traders. —Jeremy Bentham, Emancipate Your Colonies
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© 2001 Springer Science+Business Media New York
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Hannon, B., Ruth, M. (2001). The Monopolistic Firm. In: Dynamic Modeling. Modeling Dynamic Systems. Springer, New York, NY. https://doi.org/10.1007/978-1-4613-0211-7_25
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DOI: https://doi.org/10.1007/978-1-4613-0211-7_25
Publisher Name: Springer, New York, NY
Print ISBN: 978-1-4612-6560-3
Online ISBN: 978-1-4613-0211-7
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