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Economic Definition of revenue division monopoly. Defined.

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Term revenue division monopoly Definition: The marginal approach to analyzing a monopoly's profit maximizing production decision can be used to identify the division of total revenue among variable cost, fixed cost, and economic profit. The U-shaped cost curves used in this analysis provide all of the information needed on the cost side of the firm's decision. The demand curve facing the firm (which is also the firm's average revenue) and the corresponding marginal revenue curve provide all of the information needed on the revenue side.

 

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