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Comparison of Quality and Price of Commodities in the Complete Monopoly Market |
DONG Xiwang |
Zhejiang Federation of Humanities and Social Sciences Circles |
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Abstract This paper mainly discusses the choice of product quality in the late of enterprise patent. This analysis shows that, given the variety and quality of the original products unchanged, if the enterprise produce a higher quality product, the enterprise can increase its profit. However, if the quality is lower, it does not increase its profits. So, in the late of enterprise patent, if the enterprise diversification produce lower quality products, this does not conform to the principle of profit maximization, so it is most likely a sunk cost investment for monopoly in the market, so as to set barriers to entry into the market for others.
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Received: 10 November 2014
Published: 15 December 2014
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Corresponding Authors:
DONG Xiwang
E-mail: donghope@163.com
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