Power of Monopoly
The purpose of this paper is to outline a consistent microeconomic theory of the firm based on the concept of monopoly power. ... First, monopoly power is defined formally in terms of substitution. In this way, monopoly power is recognized as a fundamental characteristic of a firm which in turn affects other aspects of its behavior. Also in this theory, the relationships between monopoly power, demand elasticities, markups, total profits, and the distribution of profits, are traced systematically. ... Kriesler (1987), for example, noted that Kalecki created considerable confusion by failing to clearly distinguish between the degree of monopoly and the markup.