Skip navigation

The Incentive of a Monopolist to Provide All Goods

Authors: Economides, Nicholas
Keywords: monopoly;linear demand
Issue Date: Jul-1995
Series/Report no.: EC-95-09
Abstract: This note shows that a monopolist facing any linear demand system for n goods and no fixed costs will produce positive quantities of all goods as long as demand is positive for all goods when all are sold at marginal cost. This is in contrast with the traditional view that, in general, a multiproduct monopolist does not produce positive quantities of all goods even though there is positive demand for each of them when prices are equal to marginal cost.
Appears in Collections:Economics Working Papers

Files in This Item:
File Description SizeFormat 
95-09.pdf22.93 kBAdobe PDFView/Open

Items in FDA are protected by copyright, with all rights reserved, unless otherwise indicated.