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DescriçãoImperfect competition after regulation.svg
English: Diagram showing a firm in imperfect competition (e.g. a monopoly) - when price regulation forced it to decrease its price from P to Preg. The profit maximising firm therefore chooses to expand output from Q to Qreg. Its economic profit is reduced, but not removed entirely; for the government's point of view, allocative efficiency is achieved.
The diagram has been slightly simplified. Technically, the regulation would cause the MR curve to be malformed, but to no particular consequence other than the common sense one of reduced prices. The costs at Q and Qreg are shown as equal merely out of convenience.
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2010-04-11T16:42:21Z Mgmwki 643x557 (61384 Bytes) {{Information |Description="Government Price Control Impact on Monopoly Market" |Source={{own}} |Date=~~~~ |Author= [[User:Mgmwki|Mgmwki]] |Permission=General Microeconomic Theory Established for 100 years |other_versions=Mon
2010-10-05T20:45:52Z Jarry1250 560x400 (3803 Bytes) {{Information |Description={{en|Diagram showing that it is possible that a firm in [[:en:perfect competition|]] makes an [[:en:Economic profit|abnormal profit]], if P > min(ATC). In the [[:en:long run|]], however, only normal
{{Information |Description={{en|Diagram showing a firm in imperfect competition (e.g. a en:monopoly) - when price regulation forced it to decrease its price from P to P<sub>reg</sub>. The profit maximising firm therefore