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65
Economic theory suggests that monopoly will increase price and decrease quantity. However, from 1864 to 1914, real prices were falling and output was increasing in manufactured goods, transportation, and financial services. Why is that?
Explain:
5) Diversification meant availability of substitutes
Explain:
5) Diversification meant availability of substitutes
Goods with more substitutes have a more price elastic demand, so it limited the market power of a monopoly firm
Karteninfo:
Autor: savhighsmith
Oberthema: Economics
Thema: History of Economics
Schule / Uni: UGA
Ort: Athens
Veröffentlicht: 12.10.2010