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2 March, 23:41

Suppose a textbook monopoly can produce any level of output it wishes at a constant marginal (and average) cost of $5 per book. Assume that the mono - poly sells its books in two different markets that are separated by some distance. The demand curve in the first market is given by

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  1. 3 March, 02:57
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    Monopoly form of market also has a downward sloping demand curve where he sells more at lower price.

    Explanation:

    A monopoly is a form of market where there is only single seller of a particular product in the market and there is no close substitute of that particular product in the market. Therefore there is no supply curve in the monopoly form of market.

    A demand curve in the case of a monopoly is also a downward sloping demand curve because a monopolist can sell more by reducing his price of the product.
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