The theorem of consumer surplus and demand elasticity at equilibrium price in a monopolist competition case

Grebennikov, Petr I (2010): The theorem of consumer surplus and demand elasticity at equilibrium price in a monopolist competition case. Published in:

Abstract

In the market of a monopolistically competition the price of a long-run equilibrium, the consumers’ surplus is equal to a half of fixed cost value, and the price elasticity is equal to the ratio of total to fixed costs.

• Item Type: MPRA Paper
• Language: Russian
• Keywords: consumer surplus; price elasticity
• Subjects: D - Microeconomics > D4 - Market Structure, Pricing, and Design > D43 - Oligopoly and Other Forms of Market Imperfection

References

Chamberlin, Edward H. Theory of Monopolistic Competition. Cambridge, MA: Harvard University Press.1933.

Robinson, Joan V. The Economics of Imperfect Competition. London: Macmillan. 2d ed., 1969.