To maximize profits, this type of firm will supply products at the point where marginal revenue equals marginal cost, although prices will generally be higher with a smaller output.
This term first appeared in Aristotle's "Politics," and William Baumol argued that with low barriers to entry and exit, there is little need for regulation. To maximize profits, this type of firm will supply products at the point where marginal revenue equals marginal cost, although prices will generally be higher with a smaller output. A natural type of this may occur during a period of continual decrease in marginal cost. The most common examples of these are public utilities, and they require a lack of a substitute product to form. FTP, name this market type in which the price, price discrimination, and supply are controlled by a single firm.
This term first appeared in Aristotle's "Politics," and William Baumol argued that with low barriers to entry and exit, there is little need for regulation.
{Monopoly}