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EC311 · Intermediate Microeconomics

EC311 / TOPIC 27

8.1 Monopoly, market power and multiple plants

A teaching model for this topic. Its illustrative numbers may differ from the worked question.

1 Predict → 2 Try → 3 Explain → 4 Challenge

After a cost change, where does a monopolist read price?

Illustrative model numbers, not Thailand or current economic data.

MC rises with demand unchanged. What happens to price and output?