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Profit Price of Trade-Off Curve

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What is a profit/price trade-off curve and how does it relate to moving from a competitive industry to a monopoly industry?

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Solution Summary

The profit/price trade-offs are examined. How it relates to moving from a competitive industry to a monopoly industry is given.

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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 ...

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