Micro Economics –ECO402
VU MONOPOLY AND MONOPSONY
$/Q
ME
Monopsony Note: ME = MV; ME > AE; MV > P S = AE
PC P* MV
Q*
Monopoly
QC
Quantity
Monopsony
– MR < P – P > MC
– ME > P – P < MV
–
–
Q m < QC
–
Pm < PC
Q m < QC
–P
m>
PC
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