This chapter begins by discussing/ exploring the idea that monopolies have the potential to also be competitive. This idea confused me from the beginning, as I thought that monopolies were characterized as having no competition what so ever. I know that I will struggle to grasp this chapter as I was able to get by the previous one with this understanding. It'll be a pain trying to distinguish markets, oligopolies, and markets in this aspect now since they're like all very similar. I also really thought that there were no close substitutes in the market when there was a monopoly so the fact that competition happens due to potential replacements definitely confuses me.
Besides this concept (really just the beginning) this chapter was not that bad. I was definitely able to understand the long and short run affects for the monopolistic market. It all made sense, because the previous chapter helped us understand what dictates profit and everything. I don't quite understand why it is so desirable to exactly break even, however I do know that that is a good place to be regardless so I might bring it up in class, or just shut up about it, depending on further reading/ rereading.
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