Bec doms ppt on monopoly

Monopoly ,[object Object],[object Object],[object Object],[object Object],[object Object]

What makes a monopoly? ,[object Object],[object Object],[object Object]

How does it happen? ,[object Object],[object Object],[object Object]

2. barriers to entry ,[object Object],[object Object],[object Object],[object Object],[object Object]

natural monopoly ,[object Object],[object Object],[object Object],[object Object]

examples ,[object Object],[object Object],[object Object],[object Object]

legal monopoly ,[object Object],[object Object]

examples ,[object Object],[object Object],[object Object]

monopolist & prices ,[object Object],[object Object],[object Object],[object Object],[object Object]

Monopoly behavior ,[object Object],[object Object],[object Object],[object Object],[object Object]

P & MR ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

5 6 MR = $1 from 5 to 6 P Q D $7 $6 TR = $7 x 5 = $35 TR = $6 x 6 = $36

profit maximizing ,[object Object],[object Object],[object Object],[object Object],[object Object]

P, MR Q D MR MC Q* P* ATC economic profit

13.3 Monopoly vs. Competition ,[object Object],[object Object],[object Object]

Pm > Pc Qm < Qc P, MR Q D MR MC Qm Pm Pc Qc

Is monopoly efficient? ,[object Object],[object Object],[object Object],[object Object]

competition P, MR Q D S=MC Pc Qc consumer surplus producer surplus

monopoly P, MR Q D MR MC Qm Pm consumer surplus producer surplus deadweight loss

Price Discrimination ,[object Object],[object Object],[object Object],[object Object],[object Object]

How? ,[object Object],[object Object]

example: airlines ,[object Object],[object Object],[object Object]

[object Object],[object Object]

Example: textbooks ,[object Object],[object Object],[object Object],[object Object]

other price discrimination ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Monopoly & policy ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

why allow monopolies? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

[object Object],[object Object],[object Object]

summary: monopoly ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

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