曼昆经济学原理微观全.ppt

* * Most students already know that monopoly means the firm is the only seller of its product. But the definition here has another very important part: In order for the firm to be considered a monopoly, the product it sells must have no close substitutes available from other firms. * * The horizontal axis of the graph measures number of homes provided electricity. The vertical axis measures the average total cost of providing electricity per home. * * A competitive firm is a price-taker, can sell as much as it wants at the market price. In effect, the competitive firm sells a product