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More generally, when a firm has [[market power]], it has some leeway in setting prices but, in return, has to explicitly consider the [[market demand curve]] it faces. When a firm has monopoly, the leeway in setting prices as well as the importance of the market demand curve are maximal.
==Short-run supply choice==
===Demand curve and total revenue===
The firm faces its own market demand curve, i.e., for any value of price it sets, there is a quantity demanded by the market. The firm must meet the entire quantity demanded, so the total revenue to the firm at a given price is the product of the market price and the quantity demanded at the price.
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