Micro 14

2. Microeconomics
Lecture 14
Perfect Competition
and Monopoly

3. Questions?

4. Four Market Types

5. Four Market Types
Perfect Competition

6. Four Market Types
Perfect Competition
Monopoly

7. Four Market Types
Perfect Competition
Monopoly
Monopolistic Competition

8. Four Market Types
Perfect Competition
Monopoly
Monopolistic Competition
Oligopoly

9. Four Market Types
Perfect Competition
Monopoly
Monopolistic Competition
Oligopoly

10. Perfect Competition

11. Perfect Competition
Price does not change

12. Perfect Competition
Price does not change
Marginal Revenue = Price

13. Perfect Competition
Price does not change
Marginal Revenue = Price

14. Perfect Competition

15. Perfect Competition
$
Q
Total Market
$5
D
S
0 100 200 300 400 500

16. Perfect Competition
$
Q
Total Market
$5
D
S
0 100 200 300 400 500

17. Perfect Competition
$
Q
Total Market
$5
D
S
0 100 200 300 400 500
$
Q
Individual Firm
0 1 2 3 4 5
$5

18. Perfect Competition
$
Q
Total Market
$5
D
S
0 100 200 300 400 500
$
Q
Individual Firm
0 1 2 3 4 5
$5
No matter how much I sell
the price stays the same

19. Perfect Competition

20. Perfect Competition
As long as you can sell the
next unit for more than it
costs to make it, keep making
units.

21. Perfect Competition

22. Perfect Competition
Maximize Profit

23. Perfect Competition
Maximize Profit
MR = MC

24. Perfect Competition
Maximize Profit
MR = MC
ATC will shift up and down
due to Fixed Costs

25. Marginal
Qt
y
Costs
0
1 $20
2 $15
3 $10
4 $8
5 $5
6 $5
7 $6
8 $7
9 $10
10 $12
11 $15
12 $20
13 $26
14 $52
15 $68
16 $80

26. Marginal
Qt
y
Costs
0
1 $20
2 $15
3 $10
4 $8
5 $5
6 $5
7 $6
8 $7
9 $10
10 $12
11 $15
12 $20
13 $26
14 $52
15 $68
16 $80
Fixed Costs $100

27. Marginal
Qt
y
Costs
0
1 $20
2 $15
3 $10
4 $8
5 $5
6 $5
7 $6
8 $7
9 $10
10 $12
11 $15
12 $20
13 $26
14 $52
15 $68
16 $80
Fixed Costs $100
Price $25

28. Marginal
Qt
y
Costs
0
1 $20
2 $15
3 $10
4 $8
5 $5
6 $5
7 $6
8 $7
9 $10
10 $12
11 $15
12 $20
13 $26
14 $52
15 $68
16 $80
Fixed Costs $100
Price $25
How many should
you make?

29. Marginal
Qt
y
Costs
0
1 $20
2 $15
3 $10
4 $8
5 $5
6 $5
7 $6
8 $7
9 $10
10 $12
11 $15
12 $20
13 $26
14 $52
15 $68
16 $80
Fixed Costs $100
Price $25
How many should
you make?
What will be your
profit?

30. MR
=
MC

31. MR
=
MC

32. MR
=
MC

33. MR
=
MC

34. Marginal
Qt
y
Costs
0
1 $20
2 $15
3 $10
4 $8
5 $5
6 $5
7 $6
8 $7
9 $10
10 $12
11 $15
12 $20
13 $26
14 $52
15 $68
16 $80

35. Marginal
Qt
y
Costs
0
1 $20
2 $15
3 $10
4 $8
5 $5
6 $5
7 $6
8 $7
9 $10
10 $12
11 $15
12 $20
13 $26
14 $52
15 $68
16 $80
Free Rent

36. Marginal
Qt
y
Costs
0
1 $20
2 $15
3 $10
4 $8
5 $5
6 $5
7 $6
8 $7
9 $10
10 $12
11 $15
12 $20
13 $26
14 $52
15 $68
16 $80
Free Rent
Fixed Costs $0

37. Marginal
Qt
y
Costs
0
1 $20
2 $15
3 $10
4 $8
5 $5
6 $5
7 $6
8 $7
9 $10
10 $12
11 $15
12 $20
13 $26
14 $52
15 $68
16 $80
Free Rent
Fixed Costs $0
Price $25

38. Marginal
Qt
y
Costs
0
1 $20
2 $15
3 $10
4 $8
5 $5
6 $5
7 $6
8 $7
9 $10
10 $12
11 $15
12 $20
13 $26
14 $52
15 $68
16 $80
Free Rent
Fixed Costs $0
Price $25
How many should
you make?

39. Marginal
Qt
y
Costs
0
1 $20
2 $15
3 $10
4 $8
5 $5
6 $5
7 $6
8 $7
9 $10
10 $12
11 $15
12 $20
13 $26
14 $52
15 $68
16 $80
Free Rent
Fixed Costs $0
Price $25
How many should
you make?
What will be your
profit?

40. MR
=
MC

41. MR
=
MC

42. MR
=
MC

43. MR
=
MC

44. Perfect Competition

45. Perfect Competition
$
Quantity

46. P
Perfect Competition
$
Quantity
Demand=MR

47. P
Perfect Competition
$
Quantity
Demand=MR
1. MR=MC?

48. P
Perfect Competition
Marginal Cost
MC
$
Quantity
Demand=MR
1. MR=MC?

49. P
Perfect Competition
Marginal Cost
MC
$
Quantity
Demand=MR
1. MR=MC?

50. Q
P
Perfect Competition
Marginal Cost
MC
$
Quantity
Demand=MR
1. MR=MC?

51. Q
P
Perfect Competition
Marginal Cost
MC
$
Quantity
Demand=MR
1. MR=MC?
2.TR= P x Q

52. Q
P
Perfect Competition
Marginal Cost
MC
$
Quantity
Demand=MR
1. MR=MC?
2.TR= P x Q
Total Revenue

53. Q
P
Perfect Competition
Marginal Cost
MC
$
Quantity
Demand=MR
1. MR=MC?
2.TR= P x Q
3.TC=ATC x Q
Total Revenue

54. Q
P
Perfect Competition
Marginal Cost
MC Average Cost
ATC
$
Quantity
Demand=MR
1. MR=MC?
2.TR= P x Q
3.TC=ATC x Q
Total Revenue

55. Q
P
Perfect Competition
Marginal Cost
MC Average Cost
ATC
$
Quantity
Demand=MR
1. MR=MC?
2.TR= P x Q
3.TC=ATC x Q
Total Revenue

56. Q
P
Perfect Competition
Marginal Cost
MC Average Cost
ATC
$
Quantity
Demand=MR
1. MR=MC?
2.TR= P x Q
3.TC=ATC x Q
Total Revenue

57. Q
P
Perfect Competition
Marginal Cost
MC Average Cost
ATC
Total Cost
$
Quantity
Demand=MR
1. MR=MC?
2.TR= P x Q
3.TC=ATC x Q

58. Q
P
Perfect Competition
Marginal Cost
MC Average Cost
ATC
Total Cost
$
Quantity
Demand=MR
1. MR=MC?
2.TR= P x Q
3.TC=ATC x Q
4. Profit =TR-TC
or (P-ATC) x Q

59. Q
P
Perfect Competition
Marginal Cost
MC Average Cost
ATC
Total Cost
$
Quantity
Profit
Demand=MR
1. MR=MC?
2.TR= P x Q
3.TC=ATC x Q
4. Profit =TR-TC
or (P-ATC) x Q

60. P
Perfect Competition
$
Quantity
Demand=MR

61. P
Perfect Competition
$
Quantity
Demand=MR
1. MR=MC?

62. P
Perfect Competition
Marginal Cost
MC
$
Quantity
Demand=MR
1. MR=MC?

63. P
Perfect Competition
Marginal Cost
MC
$
Quantity
Demand=MR
1. MR=MC?

64. Q
P
Perfect Competition
Marginal Cost
MC
$
Quantity
Demand=MR
1. MR=MC?

65. Q
P
Perfect Competition
Marginal Cost
MC
$
Quantity
Demand=MR
1. MR=MC?
2.TR= P x Q

66. Q
P
Perfect Competition
Marginal Cost
MC
$
Quantity
Demand=MR
1. MR=MC?
2.TR= P x QTotal Revenue

67. Q
P
Perfect Competition
Marginal Cost
MC
$
Quantity
Demand=MR
1. MR=MC?
2.TR= P x Q
3.TC=ATC x Q
Total Revenue

68. Q
P
Perfect Competition
Marginal Cost
MC Average Cost
ATC
$
Quantity
Demand=MR
1. MR=MC?
2.TR= P x Q
3.TC=ATC x Q
Total Revenue

69. Q
P
Perfect Competition
Marginal Cost
MC Average Cost
ATC
$
Quantity
Demand=MR
1. MR=MC?
2.TR= P x Q
3.TC=ATC x Q
Total Revenue

70. Q
P
Perfect Competition
Marginal Cost
MC Average Cost
ATC
$
Quantity
Demand=MR
1. MR=MC?
2.TR= P x Q
3.TC=ATC x Q
Total Revenue

71. Q
P
Perfect Competition
Marginal Cost
MC Average Cost
ATC
Total Cost
$
Quantity
Demand=MR
1. MR=MC?
2.TR= P x Q
3.TC=ATC x Q

72. Q
P
Perfect Competition
Marginal Cost
MC Average Cost
ATC
Total Cost
$
Quantity
Demand=MR
1. MR=MC?
2.TR= P x Q
3.TC=ATC x Q
4. Profit =TR-TC
or (P-ATC) x Q

73. Q
P
Perfect Competition
Marginal Cost
MC Average Cost
ATC
Total Cost
$
Quantity
Profit
Demand=MR
1. MR=MC?
2.TR= P x Q
3.TC=ATC x Q
4. Profit =TR-TC
or (P-ATC) x Q

74. Perfect Competition

75. Perfect Competition
$
Quantity

76. P
Perfect Competition
$
Quantity
Demand=MR

77. P
Perfect Competition
$
Quantity
Demand=MR
1. MR=MC?

78. P
Perfect Competition
Marginal Cost
MC
$
Quantity
Demand=MR
1. MR=MC?

79. P
Perfect Competition
Marginal Cost
MC
$
Quantity
Demand=MR
1. MR=MC?

80. Q
P
Perfect Competition
Marginal Cost
MC
$
Quantity
Demand=MR
1. MR=MC?

81. Q
P
Perfect Competition
Marginal Cost
MC
$
Quantity
Demand=MR
1. MR=MC?
2.TR= P x Q

82. Q
P
Perfect Competition
Marginal Cost
MC
$
Quantity
Demand=MR
1. MR=MC?
2.TR= P x Q
Total Revenue

83. Q
P
Perfect Competition
Marginal Cost
MC
$
Quantity
Demand=MR
1. MR=MC?
2.TR= P x Q
3.TC=ATC x Q
Total Revenue

84. Q
P
Perfect Competition
Marginal Cost
MC Average Cost
ATC
$
Quantity
Demand=MR
1. MR=MC?
2.TR= P x Q
3.TC=ATC x Q
Total Revenue

85. Q
P
Perfect Competition
Marginal Cost
MC Average Cost
ATC
$
Quantity
Demand=MR
1. MR=MC?
2.TR= P x Q
3.TC=ATC x Q
Total Revenue

86. Q
P
Perfect Competition
Marginal Cost
MC Average Cost
ATC
$
Quantity
Demand=MR
1. MR=MC?
2.TR= P x Q
3.TC=ATC x Q
Total Revenue

87. Q
P
Perfect Competition
Marginal Cost
MC Average Cost
ATC
Total Cost
$
Quantity
Demand=MR
1. MR=MC?
2.TR= P x Q
3.TC=ATC x Q

88. Q
P
Perfect Competition
Marginal Cost
MC Average Cost
ATC
Total Cost
$
Quantity
Loss
Demand=MR
1. MR=MC?
2.TR= P x Q
3.TC=ATC x Q
4. Profit =TR-TC
or (P-ATC) x Q

89. Monopoly

90. Monopoly
One Seller

91. Monopoly
One Seller
Unique Product

92. Monopoly
One Seller
Unique Product
Market Blocked

93. Monopoly

94. Monopoly
One Seller

95. Monopoly
One Seller
Unique Product

96. Monopoly
One Seller
Unique Product
Barriers to Entry

97. Barriers to Entry

98. Barriers to Entry
Government Protection

99. Barriers to Entry
Government Protection
Key Resource

100. Barriers to Entry
Government Protection
Key Resource
Network Externalities

101. Barriers to Entry
Government Protection
Key Resource
Network Externalities
Economies of Scale

103. Patents

104. Patents
Copyrights

105. Patents
Copyrights
20Years

106. Patents
Copyrights
20Years
Lifetime plus 70Years

108. Barriers to Entry

109. Barriers to Entry
Government Protection
Key Resource
Network Externalities
Economies of Scale

110. Patents
Copyrights

111. Patents
Copyrights
20Years
Lifetime plus 70Years

112. Franchise

113. Franchise
Exclusive Legal Provider

114. New Drugs

115. New Drugs
10Years of Testing
before Approval
10Years of Monopoly

116. Network Externalities

117. Network Externalities
The more who use it
The more valuable it
becomes

118. Natural Monopoly

119. Natural Monopoly
One firm can supply
entire market at a lower
average cost than two or
more firms

120. Natural Monopoly

121. Natural Monopoly
The more I make
the lower my costs
Large Fixed Costs

122. Is competition
always good?

123. Is competition
always good?
Sometimes it can lead to
higher prices

124. Monopoly
Output and Price

125. Monopoly
Output and Price
Lower Price:
Good: Sell More
Bad: Less Revenue Per Unit

126. Perfect Competition

127. Perfect Competition
$
Quantity

128. P
Perfect Competition
$
Quantity
Demand=MR

129. P
Perfect Competition
Marginal Cost
MC
$
Quantity
Demand=MR

130. P
Perfect Competition
Marginal Cost
MC
$
Quantity
Demand=MR

131. Q
P
Perfect Competition
Marginal Cost
MC
$
Quantity
Demand=MR

132. Q
P
Perfect Competition
Marginal Cost
MC
$
Quantity
Demand=MR
Total Revenue

133. Q
P
Perfect Competition
Marginal Cost
MC Average Cost
ATC
$
Quantity
Demand=MR
Total Revenue

134. Q
P
Perfect Competition
Marginal Cost
MC Average Cost
ATC
$
Quantity
Demand=MR
Total Revenue

135. Q
P
Perfect Competition
Marginal Cost
MC Average Cost
ATC
Total Cost
$
Quantity
Demand=MR

136. Q
P
Perfect Competition
Marginal Cost
MC Average Cost
ATC
Total Cost
$
Quantity
Profit
Demand=MR

137. Perfect Competition

138. Demand
Perfect Competition

139. Demand
MR
Perfect Competition

140. Demand MR=
Perfect Competition

141. Demand MR
Monopoly

142. Demand
MR
Monopoly

143. Demand
MR
Monopoly

144. Perfect Competition Monopoly
Q D TR MR D TR MR
1
2
3
4
5
Monopoly:To get more Quantity must lower price

145. Perfect Competition Monopoly
Q D TR MR D TR MR
1
2
3
4
5
Monopoly:To get more Quantity must lower price

146. Perfect Competition Monopoly
Q D TR MR D TR MR
1
2
3
4
5
Monopoly:To get more Quantity must lower price
$3
$3
$3
$3
$3

147. Perfect Competition Monopoly
Q D TR MR D TR MR
1
2
3
4
5
Monopoly:To get more Quantity must lower price
$3
$3
$3
$3
$3
$3
$6
$9
$12
$15

148. Perfect Competition Monopoly
Q D TR MR D TR MR
1
2
3
4
5
Monopoly:To get more Quantity must lower price
$3
$3
$3
$3
$3
$3
$6
$9
$12
$15
$3
$3
$3
$3
$3

149. Perfect Competition Monopoly
Q D TR MR D TR MR
1
2
3
4
5
Monopoly:To get more Quantity must lower price
$3
$3
$3
$3
$3
$3
$6
$9
$12
$15
$3
$3
$3
$3
$3
$5
$4
$3
$2
$1

150. Perfect Competition Monopoly
Q D TR MR D TR MR
1
2
3
4
5
Monopoly:To get more Quantity must lower price
$3
$3
$3
$3
$3
$3
$6
$9
$12
$15
$3
$3
$3
$3
$3
$5
$4
$3
$2
$1
$5
$8
$9
$8
$5

151. Perfect Competition Monopoly
Q D TR MR D TR MR
1
2
3
4
5
Monopoly:To get more Quantity must lower price
$3
$3
$3
$3
$3
$3
$6
$9
$12
$15
$3
$3
$3
$3
$3
$5
$4
$3
$2
$1
$5
$8
$9
$8
$5
$5
$3
$1
-$1
-$3

152. Demand
Perfect Competition

153. Demand MR=
Perfect Competition

154. Demand
MR
Monopoly

155. Monopoly
Price
1 3
$5
$3
$4
$2
$1
$0
2 4 5
Price Qty TR MR
Qty
Lose Gain
Demand

156. Monopoly
Price
1 3
$5
$3
$4
$2
$1
$0
2 4 5
Price Qty TR MR
$5 1
Qty
Lose Gain
Demand

157. Monopoly
Price
1 3
$5
$3
$4
$2
$1
$0
2 4 5
Price Qty TR MR
$5 1
Qty
$5
Lose Gain
Demand

158. Monopoly
Price
1 3
$5
$3
$4
$2
$1
$0
2 4 5
Price Qty TR MR
$5 1
Qty
$5 $5
Lose Gain
Demand

159. Monopoly
Price
1 3
$5
$3
$4
$2
$1
$0
2 4 5
Price Qty TR MR
$5
$4
1
2
Qty
$5 $5
Lose Gain
Demand

160. Monopoly
Price
1 3
$5
$3
$4
$2
$1
$0
2 4 5
Price Qty TR MR
$5
$4
1
2
Qty
$5
$8
$5
Lose Gain
Demand

161. Monopoly
Price
1 3
$5
$3
$4
$2
$1
$0
2 4 5
Price Qty TR MR
$5
$4
1
2
Qty
$5
$8
$5
$3
Lose Gain
Demand

162. Monopoly
Price
1 3
$5
$3
$4
$2
$1
$0
2 4 5
Price Qty TR MR
$5
$4
1
2
Qty
$5
$8
$5
$3
Lose Gain
Demand

163. Monopoly
Price
1 3
$5
$3
$4
$2
$1
$0
2 4 5
Price Qty TR MR
$5
$4
1
2
Qty
$5
$8
$5
$3
Lose Gain
Demand

164. Monopoly
Price
1 3
$5
$3
$4
$2
$1
$0
2 4 5
Price Qty TR MR
$5
$4
1
2
Qty
$5
$8
$5
$3
Lose
Lose
-$1
Gain
Demand

165. Monopoly
Price
1 3
$5
$3
$4
$2
$1
$0
2 4 5
Price Qty TR MR
$5
$4
1
2
Qty
$5
$8
$5
$3
Lose
Gain
Lose
-$1
Gain
$4
Demand

166. Monopoly
Price
1 3
$5
$3
$4
$2
$1
$0
2 4 5
Price Qty TR MR
$5
$4
1
2
Qty
$5
$8
$5
$3
Lose
Gain
Lose
-$1
Gain
$4
Demand

167. Monopoly
Price
1 3
$5
$3
$4
$2
$1
$0
2 4 5
Price Qty TR MR
$5
$4
1
2
Qty
$5
$8
$5
$3
Lose
Gain
Lose
-$1
Gain
$4
Demand

168. Monopoly
Price
1 3
$5
$3
$4
$2
$1
$0
2 4 5
Price Qty TR MR
$5
$4
1
2
Qty
$5
$8
$5
$3
Lose
-$1
Gain
$4
Demand

169. Monopoly
Price
1 3
$5
$3
$4
$2
$1
$0
2 4 5
Price Qty TR MR
$5
$3
$4
1
3
2
Qty
$5
$8
$5
$3
Lose
-$1
Gain
$4
Demand

170. Monopoly
Price
1 3
$5
$3
$4
$2
$1
$0
2 4 5
Price Qty TR MR
$5
$3
$4
1
3
2
Qty
$5
$8
$9
$5
$3
Lose
-$1
Gain
$4
Demand

171. Monopoly
Price
1 3
$5
$3
$4
$2
$1
$0
2 4 5
Price Qty TR MR
$5
$3
$4
1
3
2
Qty
$5
$8
$9
$5
$3
$1
Lose
-$1
Gain
$4
Demand

172. Monopoly
Price
1 3
$5
$3
$4
$2
$1
$0
2 4 5
Price Qty TR MR
$5
$3
$4
1
3
2
Qty
$5
$8
$9
$5
$3
$1
Lose
-$2
-$1
Gain
$4
Lose
Demand

173. Monopoly
Price
1 3
$5
$3
$4
$2
$1
$0
2 4 5
Price Qty TR MR
$5
$3
$4
1
3
2
Qty
$5
$8
$9
$5
$3
$1
Lose
-$2
-$1
Gain
$3
$4
Lose Gain
Demand

174. Monopoly
Price
1 3
$5
$3
$4
$2
$1
$0
2 4 5
Price Qty TR MR
$5
$3
$4
1
3
2
Qty
$5
$8
$9
$5
$3
$1
Lose
-$2
-$1
Gain
$3
$4
Demand

175. Monopoly
Price
1 3
$5
$3
$4
$2
$1
$0
2 4 5
Price Qty TR MR
$5
$3
$4
$2
1
3
2
4
Qty
$5
$8
$9
$5
$3
$1
Lose
-$2
-$1
Gain
$3
$4
Demand

176. Monopoly
Price
1 3
$5
$3
$4
$2
$1
$0
2 4 5
Price Qty TR MR
$5
$3
$4
$2
1
3
2
4
Qty
$5
$8
$9
$8
$5
$3
$1
Lose
-$2
-$1
Gain
$3
$4
Demand

177. Monopoly
Price
1 3
$5
$3
$4
$2
$1
$0
2 4 5
Price Qty TR MR
$5
$3
$4
$2
1
3
2
4
Qty
$5
$8
$9
$8
$5
$3
$1
-$1
Lose
-$2
-$1
Gain
$3
$4
Demand

178. Monopoly
Price
1 3
$5
$3
$4
$2
$1
$0
2 4 5
Price Qty TR MR
$5
$3
$4
$2
1
3
2
4
Qty
$5
$8
$9
$8
$5
$3
$1
-$1
Lose
-$2
-$1
-$3
Gain
$3
$4
Lose
Demand

179. Monopoly
Price
1 3
$5
$3
$4
$2
$1
$0
2 4 5
Price Qty TR MR
$5
$3
$4
$2
1
3
2
4
Qty
$5
$8
$9
$8
$5
$3
$1
-$1
Lose
-$2
-$1
-$3
Gain
$3
$4
$2
Lose Gain
Demand

180. Monopoly
Price
1 3
$5
$3
$4
$2
$1
$0
2 4 5
Price Qty TR MR
$5
$3
$4
$2
1
3
2
4
Qty
$5
$8
$9
$8
$5
$3
$1
-$1
Lose
-$2
-$1
-$3
Gain
$3
$4
$2
Demand

181. Monopoly
Price
1 3
$5
$3
$4
$2
$1
$0
2 4 5
Price Qty TR MR
$5
$3
$4
$2
$1
1
3
2
4
5
Qty
$5
$8
$9
$8
$5
$3
$1
-$1
Lose
-$2
-$1
-$3
Gain
$3
$4
$2
Demand

182. Monopoly
Price
1 3
$5
$3
$4
$2
$1
$0
2 4 5
Price Qty TR MR
$5
$3
$4
$2
$1
1
3
2
4
5
Qty
$5
$8
$9
$8
$5
$5
$3
$1
-$1
Lose
-$2
-$1
-$3
Gain
$3
$4
$2
Demand

183. Monopoly
Price
1 3
$5
$3
$4
$2
$1
$0
2 4 5
Price Qty TR MR
$5
$3
$4
$2
$1
1
3
2
4
5
Qty
$5
$8
$9
$8
$5
$5
$3
$1
-$1
-$3
Lose
-$2
-$1
-$3
Gain
$3
$4
$2
Demand

184. Monopoly
Price
1 3
$5
$3
$4
$2
$1
$0
2 4 5
Price Qty TR MR
$5
$3
$4
$2
$1
1
3
2
4
5
Qty
$5
$8
$9
$8
$5
$5
$3
$1
-$1
-$3
Lose
-$2
-$1
-$3
-$4
Gain
$3
$4
$2
Lose
Demand

185. Monopoly
Price
1 3
$5
$3
$4
$2
$1
$0
2 4 5
Price Qty TR MR
$5
$3
$4
$2
$1
1
3
2
4
5
Qty
$5
$8
$9
$8
$5
$5
$3
$1
-$1
-$3
Lose
-$2
-$1
-$3
-$4
Gain
$3
$4
$2
$1
Lose
Gain Demand

186. Monopoly
Price
1 3
$5
$3
$4
$2
$1
$0
2 4 5
Price Qty TR MR
$5
$3
$4
$2
$1
1
3
2
4
5
Qty
$5
$8
$9
$8
$5
$5
$3
$1
-$1
-$3
Lose
-$2
-$1
-$3
-$4
Gain
$3
$4
$2
$1
Demand

187. Monopoly
Price
1 3
$5
$3
$4
$2
$1
$0
2 4 5
Price Qty TR MR
$5
$3
$4
$2
$1
1
3
2
4
5
Qty
$5
$8
$9
$8
$5
$5
$3
$1
-$1
-$3
Lose
-$2
-$1
-$3
-$4
Gain
$3
$4
$2
$1
Demand

188. Monopoly
Price
1 3
$5
$3
$4
$2
$1
$0
2 4 5
Price Qty TR MR
$5
$3
$4
$2
$1
1
3
2
4
5
Qty
$5
$8
$9
$8
$5
$5
$3
$1
-$1
-$3
Lose
-$2
-$1
-$3
-$4
Gain
$3
$4
$2
$1
Demand

189. Monopoly
Price
1 3
$5
$3
$4
$2
$1
$0
2 4 5
Price Qty TR MR
$5
$3
$4
$2
$1
1
3
2
4
5
Qty
$5
$8
$9
$8
$5
$5
$3
$1
-$1
-$3
Lose
-$2
-$1
-$3
-$4
Gain
$3
$4
$2
$1
Demand

190. Monopoly
Price
1 3
$5
$3
$4
$2
$1
$0
2 4 5
Price Qty TR MR
$5
$3
$4
$2
$1
1
3
2
4
5
Qty
$5
$8
$9
$8
$5
$5
$3
$1
-$1
-$3
Lose
-$2
-$1
-$3
-$4
Gain
$3
$4
$2
$1
Demand

191. Monopoly
Price
1 3
$5
$3
$4
$2
$1
$0
2 4 5
Price Qty TR MR
$5
$3
$4
$2
$1
1
3
2
4
5
Qty
$5
$8
$9
$8
$5
$5
$3
$1
-$1
-$3
Lose
-$2
-$1
-$3
-$4
Gain
$3
$4
$2
$1
Demand
Marginal Revenue MR

192. Monopoly
$
Q

193. Monopoly
$
Q
Demand

194. Marginal Revenue MR
Monopoly
$
Q
Demand

195. Marginal Cost
MC
Marginal Revenue MR
Monopoly
$
Q
Demand

196. Marginal Cost
MC
Marginal Revenue MR
Monopoly
$
Q
Demand
1. MR=MC?

197. Marginal Cost
MC
Marginal Revenue MR
Monopoly
$
Q
Demand
1. MR=MC?

198. Marginal Cost
MC
Q
Marginal Revenue MR
Monopoly
$
Q
Demand
1. MR=MC?

199. Marginal Cost
MC
Q
P
Marginal Revenue MR
Monopoly
$
Q
Demand
1. MR=MC?

200. Marginal Cost
MC
Q
P
Marginal Revenue MR
Monopoly
$
Q
Demand
1. MR=MC?
2.TR= P x Q

201. Marginal Cost
MC
Q
P
Marginal Revenue MR
Monopoly
Average Cost
ATC
$
Q
Demand
1. MR=MC?
2.TR= P x Q

202. Marginal Cost
MC
Q
P
Marginal Revenue MR
Monopoly
Average Cost
ATC
$
Q
Demand
1. MR=MC?
2.TR= P x Q
3.TC=ATC x Q

203. Marginal Cost
MC
Q
P
Marginal Revenue MR
Monopoly
Average Cost
ATC
$
Q
Demand
1. MR=MC?
2.TR= P x Q
3.TC=ATC x Q

204. Marginal Cost
MC
Q
P
Marginal Revenue MR
Monopoly
Average Cost
ATC
$
Q
Demand
1. MR=MC?
2.TR= P x Q
3.TC=ATC x Q

205. Marginal Cost
MC
Q
P
Marginal Revenue MR
Monopoly
Average Cost
ATC
$
Q
Demand
1. MR=MC?
2.TR= P x Q
3.TC=ATC x Q

206. Marginal Cost
MC
Q
P
Marginal Revenue MR
Monopoly
Average Cost
ATC
Cost
$
Q
Demand
1. MR=MC?
2.TR= P x Q
3.TC=ATC x Q

207. Marginal Cost
MC
Q
P
Marginal Revenue MR
Monopoly
Average Cost
ATC
Cost
$
Q
Demand
1. MR=MC?
2.TR= P x Q
3.TC=ATC x Q
4. Profit =TR-TC
or (P-ATC) x Q

208. Marginal Cost
MC
Q
P
Marginal Revenue MR
Monopoly
Average Cost
ATC
Cost
$
Q
Demand
1. MR=MC?
2.TR= P x Q
3.TC=ATC x Q
4. Profit =TR-TC
or (P-ATC) x Q

209. Marginal Cost
MC
Q
P
Marginal Revenue MR
Monopoly
Average Cost
ATC
Cost
$
Q
Profit
Demand
1. MR=MC?
2.TR= P x Q
3.TC=ATC x Q
4. Profit =TR-TC
or (P-ATC) x Q

210. Marginal Cost
MC
Q
P
Marginal Revenue MR
Monopoly
Average Cost
ATC
Cost
$
Q
Profit
Demand
1. MR=MC?
2.TR= P x Q
3.TC=ATC x Q
4. Profit =TR-TC
or (P-ATC) x Q

211. Marginal Cost
MC
Q
P
Marginal Revenue MR
Monopoly
Average Cost
ATC
Cost
$
Q
Profit
Demand
Consumer
Surplus
1. MR=MC?
2.TR= P x Q
3.TC=ATC x Q
4. Profit =TR-TC
or (P-ATC) x Q

212. Marginal Cost
MC
Q
P
Marginal Revenue MR
Monopoly
Average Cost
ATC
Cost
$
Q
Profit
Demand
Consumer
Surplus
1. MR=MC?
2.TR= P x Q
3.TC=ATC x Q
4. Profit =TR-TC
or (P-ATC) x Q

213. Marginal Cost
MC
Q
P
Marginal Revenue MR
Monopoly
Average Cost
ATC
Cost
$
Q
Profit
Demand
Deadweight
Loss
Consumer
Surplus
1. MR=MC?
2.TR= P x Q
3.TC=ATC x Q
4. Profit =TR-TC
or (P-ATC) x Q

214. Antitrust
Laws

215. Antitrust
Laws
Collusion
Felony

216. Monopoly Review
One-Price
Multi-Price
Discrimination
Two Price- Coupons

217. Riyadh Pizza Company
Saudi Style Supreme

218. Riyadh Pizza Company
Saudi Style Supreme
0
10
20
30
40
Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki

219. Riyadh Pizza Company
Saudi Style Supreme
0
10
20
30
40
Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki
Marginal Cost
29

220. Riyadh Pizza Company
Saudi Style Supreme
0
10
20
30
40
Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki
Marginal Cost
29
Price
Marginal Revenue
30
Perfect Competition

221. Riyadh Pizza Company
Saudi Style Supreme
0
10
20
30
40
Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki
Marginal Cost
29
Price
36

222. Riyadh Pizza Company
Saudi Style Supreme
0
10
20
30
40
Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki
Monopoly
Marginal Cost
29
Price
36

223. Riyadh Pizza Company
Saudi Style Supreme
0
10
20
30
40
Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki
Marginal Cost
29

224. Riyadh Pizza Company
Saudi Style Supreme
0
10
20
30
40
Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki
Monopoly with Price Discrimination
Marginal Cost
29

225. Riyadh Pizza Company
Saudi Style Supreme
Monopoly with Coupon

226. Riyadh Pizza Company
Saudi Style Supreme
0
10
20
30
40
Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki
Monopoly with Coupon

227. Riyadh Pizza Company
Saudi Style Supreme
Marginal Cost
29
0
10
20
30
40
Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki
Monopoly with Coupon

228. Riyadh Pizza Company
Saudi Style Supreme
Marginal Cost
29
0
10
20
30
40
Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki
Monopoly with Coupon
Charge higher price to increase profits

229. Riyadh Pizza Company
Saudi Style Supreme
Marginal Cost
29
0
10
20
30
40
Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki
Price 36
Monopoly with Coupon
Charge higher price to increase profits

230. Riyadh Pizza Company
Saudi Style Supreme
Marginal Cost
29
0
10
20
30
40
Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki
Price 36
Monopoly with Coupon
Charge higher price to increase profits

231. Riyadh Pizza Company
Saudi Style Supreme
Marginal Cost
29
0
10
20
30
40
Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki
Price 36
Total Profit
7 x 3 = 21
Monopoly with Coupon
Charge higher price to increase profits

232. Riyadh Pizza Company
Saudi Style Supreme
Marginal Cost
29
0
10
20
30
40
Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki
Price 36
Total Profit
7 x 3 = 21
Monopoly with Coupon
Deadweight Loss
Charge higher price to increase profits

233. Riyadh Pizza Company
Saudi Style Supreme
Marginal Cost
29
0
10
20
30
40
Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki
Price 36
Total Profit
7 x 3 = 21
Monopoly with Coupon
Charge higher price to increase profits
Price with coupon 36 - 4 = 32 Coupon
Price 32

234. Riyadh Pizza Company
Saudi Style Supreme
Marginal Cost
29
0
10
20
30
40
Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki
Price 36
Total Profit
7 x 3 = 21
Monopoly with Coupon
Charge higher price to increase profits
Price with coupon 36 - 4 = 32 Coupon
Price 32

235. Riyadh Pizza Company
Saudi Style Supreme
Marginal Cost
29
0
10
20
30
40
Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki
Price 36
Total Profit
7 x 3 = 21
Monopoly with Coupon
Charge higher price to increase profits
Price with coupon 36 - 4 = 32
Add Profit
2 x 3 = 6
Coupon
Price 32

236. Riyadh Pizza Company
Saudi Style Supreme
Marginal Cost
29
0
10
20
30
40
Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki
Price 36
Total Profit
7 x 3 = 21
Monopoly with Coupon
Charge higher price to increase profits
Price with coupon 36 - 4 = 32
Add Profit
2 x 3 = 6
New Total Profit
21 + 6 = 27
Coupon
Price 32

237. Monopoly Review
One-Price
Multi-Price
Discrimination
Two Price- Coupons