Re: Isi 2008. Monopoly and two types of demands

Posted by Spiti on May 08, 2014; 8:54pm
URL: http://discussion-forum.276.s1.nabble.com/Isi-2008-Monopoly-and-two-types-of-demands-tp7589067p7589082.html

We get q1=q2 when we equate MR1=MR2 but these values do not satisfy MR2=MC. shouldn't they? Because in 2nd type market, MR2>MC. So it pays the monopolist to increase production.