Types of Barriers
¨ Legal barriers e.g. copyright law or patent.
¨ Natural barrier that is non-availability or accessibility to the resources.
¨ Technological barrier that is lack of technical know-how.
¨ Ignorance of other firms.
Revenue Schedule and Curves of Monopoly
Illustration
Price (P)
($)
Qty (Q)
(units)
TR = P´Q
AR = TR
Q
MR = DTR
DQ
$10.50
10.00
9.50
9.00
8.50
8.00
7.50
7.00
6.50
6.00
5.50
5.00
4.50
0
1
2
3
4
5
6
7
8
9
10
11
12
19
27
34
40
45
49
52
54
55
$10
-1
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