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The flat perceived demand curve means that, from the viewpoint of the perfectly competitive firm, it could sell either a relatively low quantity like Ql or a relatively high quantity like Qh at the market price P. What defines the market? A monopoly is a firm that sells all or nearly all of the goods and services in a given market.
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Monopoly Rents. The following table shows the costs of properties and the levels of rents in the UK version of the famous game, Monopoly. The data are taken from a game marked as being ©1972; the author does not know if games of other dates had different prices or rents. There is some pattern to the numbers:
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An electric company is a good example of a needed monopoly. The disadvantages of monopolies are: Price fixing privileges that allow them to dictate prices, regardless of demand. Supply of a low quality product. Low incentive for product innovation. Possible creation of cost-push inflation.
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It's important to be aware of London's transport zones and to find out what zone a station is in. Ticket prices for One Day, Weekly or Monthly Travelcard or the money deducted from a Pay as you go Oyster card can vary considerably according to how many zones you travel through.
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Monopoly power A pure monopoly is defined as a single supplier. While there only a few cases of pure monopoly, monopoly 'power' is much more widespread, and can exist even when there is more than one supplier - such in markets with only two firms, called a duopoly, and a few firms, an oligopoly. According