Whereas the demand curve of a perfectly competitive firm is perfectly elastic, the demand curve of a monopolist is downward-sloping.
In a monopoly, there is a single producer that profit-maximizes.
A monopoly is not allocatively efficient as they produce too little and charge too high of a price.
If a monopolist can differentiate its customers, it will employ price discrimination in order to increase profitability.
In the long-run, a monopoly will make profit.
On the left-side of a monopolist’s demand curve, the item is elastic.
On the right-side of a monopolist’s demand curve, the item is inelastic.
Lecture Slides are screen-captured images of important points in the lecture. Students can download and print out these lecture slide images to do practice problems as well as take notes while watching the lecture.
This book created a 5-step plan to help you study more effectively, use your preparation time wisely, and get your best score. This book includes two full-length practice exams modeled on the real test, all the terms and concepts you need to know to get your best score, and your choice of three customized study schedules.
This book includes an in-depth preparation for both AP economics exams. It features two full-length practice tests, one in Microeconomics and one in Macroeconomics, and all test questions answered and explained. It also features a detailed review of all test topics, which include: supply and demand, theory of consumer choice, economics in the public sector, costs, perfect and imperfect competition, monopolies, labor resources, game theory, the national income and gross domestic product, inflation and unemployment, fiscal policy, money and banking, monetary policy, economic growth, international trade and exchange, interest rate determination, and the market for loanable funds.