Question 4.108

2. In economics, it is often useful to distinguish between a firm that has a monopoly (for example, is the only supplier of a product) and firms that supply only a small share of the market. How would the presence of a monopoly affect the relation between production and price? Would the presence of a monopoly tend to ensure the fixed-profit assumption of linear programming, or would it make it more likely that the interplay of supply and demand would have to be considered in order to have a truly realistic model? Write an essay addressing these issues.