Economies of Scale A monopolist might be better placed to exploit increasing returns to scale leasing to n equilibrium that gives a higher output and a lower price than under competitive conditions. This is illustrated in the next diagram, where we assume that the monopolist is able to drive marginal costs lower in the long run, finding an equilibrium output of SQ and pricing below the ...
What Happens When Highly Competitive Industry
January 10, 2018 \ Business Papers, Industry \ 0 Comments