What is a profit/price trade-off curve and how does it relate to moving from a competitive industry to a monopoly industry?© BrainMass Inc. brainmass.com November 24, 2022, 11:56 am ad1c9bdddf
Profits are good for the monopolistic firms. The consumers are willing to pay for the goods at the monopoly price. Nobody is being forced to do anything, so there is a system of mutually beneficial exchange with no coercion. The monopolist can set whatever price he wants and can earn corresponding profit (Profit/Price trade off curve). But the socially optimal output ...
The profit/price trade-offs are examined. How it relates to moving from a competitive industry to a monopoly industry is given.