A monopolist cannot solve such losses by raising its prices. It is conceivable that a monopolist may have no point on the demand curve at which it will turn a profit. Under such circumstances, the monopolist has to simply accept the loss or exit the industry, as raising the price to cover costs will result in a reduction of revenue.
b) a monopolist cannot charge any price it wants. For any product -- even in a monopoly -- there is a point of maximum profit for any point on the demand curve. Above that point, demand falls as consumers switch to a substitute, ration their consumer or simply refuse to consume the product. At this point, a marginal increase in revenue will result in a marginal reduction in profit. For the monopolist, increasing prices simply will not result in increased profits; neither will lowering them. If at this point the monopolist is not covering its costs, then the industry is unprofitable. The monopolist can choose to reduce its costs or exit the business.
Unfortunately, there really are no immediate solutions that would reduce the technology division between first world and third world nations: unless of course there was a complete reengineering of the social segregation of the haves and have not's. In an economic sense, for the Third World, food and water should probably come first in their specific hierarchy of needs. "Progress in raising real incomes and alleviating poverty has been
The author makes mention of potential careers in economics, but also points out how one will use one's economics background even if he or she does not ultimately pursue an economics career. The information that the author presents in this section is realistic and accurate, and includes ways to follow-up on an undergraduate economics education. It is easy enough to understand these concepts the way they are presented. By no
chief economic principle that must be confronted in the horrifying picture Steven Brill paints in "Bitter Pill: Why Medical Bills Are Killing Us" is the devastating effect caused by economic monopoly. Brill tiptoes around the issue, and basically defines monopoly by the concept of "powerless buyers" -- -but the economic conditions that render buyers powerless are economic conditions that restrict a buyer's freedom of choice, which is precisely the
Challenging markets can also be a drive of growth, as fewer people will attempt to manage their own finances. With this much growth in the industry, it can be relative easy to find a job, if one is qualified. The qualification process is challenging, and acts as a barrier to entry. This bodes well for anybody with the relevant formal education and industry qualifications. If you have access to money
Economic Impact Study: Students at Schreiner University An economic impact analysis is designed to estimate both the direct and indirect effects on the economy that are associated with any given type of expenditure. In other words, an increase in the demand society has for a product sets in motion a series of various expenditures from the companies and organizations that provide what is needed to make that product. The parts and
Career Development Five-year career development plan The unstable economy might cause a recent college graduate to throw up his or her hands in despair at the idea of planning for the next five months in today's economic environment, much less his or her professional development over the course of the next five years. However, the very instability that causes such negative and self-defeating thinking makes it all the more necessary that one
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