How to price monopoly market share?

The realization of monopoly profit: the monopoly price mainly set by monopoly organizations.

The formula is:

Monopoly price = cost price+average profit+monopoly profit

Monopoly price is the market price set by a monopoly organization by virtue of its monopoly position when selling or buying goods, aiming at ensuring the maximum profit.

Mode:

1, market share model

The key to understand monopoly market share is to follow the law of MR=MC and determine the distribution of market share. In the case of different costs and the same demand curve and marginal revenue line, enterprises with low marginal costs have large market share and low prices; Enterprises with high marginal costs have small market share and high prices.

2. Price leading mode

In the above two cases, monopoly enterprises set their own prices. In fact, many times it is set by an oligarch, and other oligarchs are only price recipients.

3. Game theory model

The competition between monopoly enterprises is actually a game, that is, all competitors fully consider the possible choices made by all parties under the existing conditions, and then make the most favorable decision for themselves.