ECON308: Monopoly = Price Searcher)
Monopoly profits only occur if TR( Pm x Qm) is greater than TC (AC x Qm) There is nothing in being a monopoly that guarantees profits. A. The existence of profits will stimulate resource owners to produce similar products. B. As more close substitutes enter the market, the demand facing the monopoly will decline and become more elastic. ................
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