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2 Market Structure Perfect and Imperfect Markets
2 Market Structure Perfect and Imperfect Markets
Perfect Pure
Competition Monopoly
Perfect Pure
Competition Monopoly
d1
30
MR1 3. ATC at 250 units is less
4.ABC’s monthly than price, so profit per
profit–$10,000–is unit is positive.
the area of the
shaded rectangle.
250 Homes Serviced per Month
27
• Suppose demand, price and total cost functions for a monopoly firm in
the short run are given as demand function: Q: 100-0.2P
price function: P: 500-5Q