This chapter is about monopolies.
It discusses how they are formed.
It discusses how they make profit.
It discusses their welfare cost.
A monopoly is a firm that is a sole seller of a product without close substitutes.
The firms become price makers.
The marginal revenue of monopoly firms arent a straight line because they hold market power.
Monopolies still produce where marginal revenue is equal to marginal cost.
Monopolies can be inefficient but are able to be regulated.
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