Suppose a textbook monopoly can produce any level of output it wishes at a constant marginal (and average) cost of $5 per book. Assume that the mono - poly sells its books in two different markets that are separated by some distance. The demand curve in the first market is given by

Question

Isla Hendricks

Business

7 February, 23:55

Suppose a textbook monopoly can produce any level of output it wishes at a constant marginal (and average) cost of $5 per book. Assume that the mono - poly sells its books in two different markets that are separated by some distance. The demand curve in the first market is given by

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Johanna Gutierrez · Answer 1

Monopoly form of market also has a downward sloping demand curve where he sells more at lower price.

Explanation:

A monopoly is a form of market where there is only single seller of a particular product in the market and there is no close substitute of that particular product in the market. Therefore there is no supply curve in the monopoly form of market.

A demand curve in the case of a monopoly is also a downward sloping demand curve because a monopolist can sell more by reducing his price of the product.