Therefore, brand new monopolist is able to raise the manufacturing will set you back of their competition from application of the newest ECPR
Although the ECPR might have been recommended in order to prohibit entryway regarding complementary an excellent industry by the unproductive entrants, it can be used in order to prohibit or marginalize just as productive or more beneficial rivals whenever there are expanding production so you’re able to measure. The bottleneck monopolist are able to use the newest ECPR to ascertain higher interconnection otherwise supply costs one to trigger a restriction of your level of process of your competitor regarding the complementary markets. Offered increasing output in order to size, the fresh new competition following operates during the high-end of the average prices contour. （更多…）