10. P ROS AND C ONS OF OUR M ARKET Monopoly Perfect Competition Pros - Maximum Control of Prices - Low barrier of entry Cons - Inefficient - Lack of Innovation - Diseconomies of scale - Based on price - Lack of product variety - Can't control price
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Editor's Notes
-Monopoly has at least 25% market share but pure monolopy has 100% market share
• Maximize profit by producing output level where mc=mr • Make profit if price exceeds average total cost
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