Monopoly analysis what if the industry cost curve is higher than the monopoly cost curve
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The marginal cost curve is upward-sloping. ... If the monopoly produces a lower quantity, then MR > MC at those levels of output, and the firm can make higher profits by expanding output. If the firm produces at a greater quantity, then MC > MR, and the firm can make higher profits by reducing its quantity of output.
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It therefore increases its supply to N + 1 units of output. The downward‐sloping market demand curve indicates that the new market price will be lower than before. ... Thus, the price the monopolist receives from selling N + 1 units exceeds the marginal revenue that it receives from supplying the additional unit of output
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