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1、Monopoly forming reasons: patent ernment In a monopoly structure.it different on choosing options on price and amount of supply with compared with The traditional options for pharmaceutical industry provide suggestions about how monopoly set up the price.ronduce about maxium profit principle : MC= ,
2、 the nature of monopoly marketMonopoly forming reasons: patent ernment In a monopoly structure.it different on choosing options on price and amount of supply with compared with The traditional options for pharmaceutical industry provide suggestions about how monopoly set up the price.ronduce about m
3、axium profit principle : MC= , the nature of monopoly market in shorttermeansthelifeofatent outdate, how the company will play the role in competitive roduce fromConsideringaboutthewelfareofwhole generic 药品的质量等怀疑的忠诚用户并不会介意价格的差别。研究表明,平均只有市场 5generic进入后,才会对原有公司的药品价格产生影响。很多药物价格甚 了Since increasing techn
4、ology has exploited by industrial pharmacists, the protection this proprietary technology is strongly supported ernment through ion of patent laws. One argument is for sure: the patent defends the right of owningthisinvention lly when other companiescopy product in illegal way and the guarantee of r
5、ightsitive environment to encourage greater erestsof patentee can prove he industry. However, er given ernment also can drive to rfect situation where monopoly rise as the r on the market sets ization. The noteworthy poprice monopoly. optimal price to achieve the objective of t not everyone benefit
6、from the behavior considerable profit of monopoly comes at the expense of deadweight loss. Thus, it difficult to balance the relation n public welfare and erest. Due creation of a vaccine which is capable of millions of deaths, pharmaceutical company a new avian flu which causes the industrial and n
7、eeds to choose the approach to make economic value and earn profits. essay attempts yze the situation of the company in the monopoly structure and e few options for this company to achieve different It will begin with the emphasis of the key nature of monopoly essay attempts yze the situation of the
8、 company in the monopoly structure and e few options for this company to achieve different It will begin with the emphasis of the key nature of monopoly and then sections in sequence respectively illustrate with based on the characteristic, how take options ize profit in short run and long run and h
9、ow to take a tool increasethe economic welfarewhich includesthepublic and privateThenatureofThe essential feature of monopolist is the overriding influence on listing the price ore details, this phenomenon stems from uniqueness of the new tmeansif consumerswant to purchase the commodity provided by
10、ABC and they have to agree the fixing price decided by the exclusive offer because it sible to find the substitute for it on the market. The er to price affords the sole seller the right of controlling the market. In other word, Company can decide both of the amount of supply and the price of sellin
11、g any ion. However, the demand curve also impacts on the of price amount by t the merchant must reduce the price in order to t all supply can be sold. To achieve the goal izing benefits, ABC Company to design an optimal combination plan according to its own circumstance detailson it will be discusse
12、d in arts).Moreover, theer isutilized the lever for establishing the barriers which can prevent huge following from entering market. Additionally, the normal way to set price on the market ordinarily will lead to the loss of l welfare and the er can the damage of it by carrying out price discriminat
13、ion. It is not hard to e t the l characteristic of monopoly is the role of price setter. ability to influence price is t causes the monopoly market structure erABCCompany to obtain profitsfromthe monopolistic Theoptionsfordifferent HowizeprofitsinshortAccording to the principles of economics, in wha
14、tever type of market, competition market or monopoly market, cooperate can find when marginal revenue is equal to marginal cost. The ized ty According to the principles of economics, in whatever type of market, competition market or monopoly market, cooperate can find when marginal revenue is equal
15、to marginal cost. The ized ty found where the marginal-companiescan makea supply ersects the marginal-cost curve basedon thenumber ofWhereas, there are some n monopoly market and supply decided. The major difference market on the s marginal revenue is equal monopolist can set a to average revenue (p
16、rice) in competitive market n marginal revenue. Specifically, the term marginal t represents the extra revenue earned by selling one more unit output is not fixed for ABC Company. ABC Company is the sole producer regarding the market demand curve as its own which slopes downward and restrictthe abil
17、ityto profit from monopoly behavior. If ABC Company raises the price of its medicine, consumers buy less of it. To put it in another way, increasing supply indicates lowering theprice. As aresult, whenABC Company increases productionby1unit, it must reduce the price it charges for every unit it sell
18、s, and this cut in price redurevenue on the units it was already selling. Thus ABC Companys marginal-curve differentiated with the competitive s below its demand curve and companyto give apricebased ontywithAs following graph shown, there are two stages for monopoly company like Company(same ut few on the marginal-cost curve ) to get step, the firm frames its level of produ
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