On this note, let’s see what happens when there are few producers. For the sake of simplicity, we will start with a market with only one supplier, a monopoly. We analyze the price the monopoly charges and the amount of production it produces, how these decisions affect the general welfare, and under what circumstances government intervention can increase the general welfare.
Darden School of Business (UV5688-PDF-ENG)
June 15, 2011
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