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Uncertain innovation and persistence of monopoly revisited

โœ Scribed by Sang-Seung Yi


Book ID
116102162
Publisher
Elsevier Science
Year
1995
Tongue
English
Weight
185 KB
Volume
49
Category
Article
ISSN
0165-1765

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Innovation and the opportunity cost of m
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## Abstract Innovation enables monopolists to lower their costs, expand their outputs, and reduce their prices. It is conventional to conclude that social welfare unambiguously increases as a result. Assuming linear demand and marginal cost, this paper shows, however, that innovation raises the opp