in time period 1 you would sell to everyone at the monopoly price, but having saturated that market you would then lower the price, and then do it again, and do this all quickly, until price was equal to marginal cost
Isn’t this basically the hangman’s paradox in reverse? Each and every period where a company could offer you an above-MC price, you could refuse, and so you wait until the final period to buy. But instead that time never comes, and you are in fact surprised.
Isn’t this basically the hangman’s paradox in reverse? Each and every period where a company could offer you an above-MC price, you could refuse, and so you wait until the final period to buy. But instead that time never comes, and you are in fact surprised.