1
Q
Why do monopolies exist?
A
High bars to entry of market for firms
2
Q
Where does the MR and D curve start for monopolies
A
at the same place
3
Q
why is MR always below the D curve
A
The MR must decrease as D’s quantity only increases with a lesser price. Since the lesser price affects all units, the MR gets smaller.
4
Q
Why can high bars to enter the market exist?
A
Government limiting stuff, resources controlled by a singular firm, economies of scale, copyrights/patents.
5
Q
Elastic range of a monopoly’s demand curve
A
Where MR if positive
6
Q
A
7
Q
A
8
Q
A
9
Q
A
AP Microeconomics
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