Principles of Microeconomics / Unit 8 MIC 0718 short lesson, about 20 seconds
Three Myths About Monopoly
Captions available
The idea
A monopolist cannot charge whatever it wants; demand holds it. It does not charge all the market will bear, or it would sell one unit. And profit is not guaranteed.
In practice
A patented drug nobody will pay for earns its holder nothing.
Where people slip
Market power is the power to choose a point on the demand curve, not to move it.
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