Market structure is determined by following factors:
• Barriers to entry: Competition within the market will determine the firm's future profits, and future profits will determine the entry and exit … See more

A monopoly has at least one of these five characteristics:
• Profit maximizer: monopolists will choose the price or output to maximise profits at where MC=MR.This output will be somewhere over the price range, … See more

Monopolies derive their market power from barriers to entry – circumstances that prevent or greatly impede a potential competitor's ability to compete in a market. There are three major types of barriers to entry: economic, legal, and deliberate.
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While monopoly and perfect competition represent the extremes of market structures there is some similarity. The cost functions are the same. Both monopolies and perfectly competitive (PC) companies minimize cost and maximize profit. The … See more

A monopoly chooses that price that maximizes the difference between total revenue and total cost. The basic markup rule (as measured by the Lerner index) can be expressed as $${\displaystyle {\frac {P-MC}{P}}={\frac {-1}{E_{d}}}}$$, where
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Price discrimination allows a monopolist to increase its profit by charging higher prices for identical goods to those who are willing or able to pay more. For example, most economic textbooks cost more in the United States than in developing countries like See more

According to the standard model, in which a monopolist sets a single price for all consumers, the monopolist will sell a lesser quantity of goods at a higher price than would companies by perfect competition. Because the monopolist ultimately forgoes … See more