This document discusses monopoly and perfect competition in microeconomics. It defines monopoly as a market with a single seller and significant barriers to entry. A monopoly will choose its profit-maximizing output level where marginal revenue equals marginal cost, resulting in a higher price and lower quantity than under perfect competition. The document provides graphs and explanations comparing supply, demand, output, price and profit under monopoly versus perfect competition.
125. Monopoly
Marginal Cost
MC
Q
P
Average Cost
ATC
Demand
Marginal Revenue MR
$
Q
1. MR=MC?
2. TR= P x Q
126. Monopoly
Marginal Cost
MC
Q
P
Average Cost
ATC
Demand
Marginal Revenue MR
$
Q
1. MR=MC?
2. TR= P x Q
3. TC=ATC x Q
127. Monopoly
Marginal Cost
MC
Q
P
Average Cost
ATC
Demand
Marginal Revenue MR
$
Q
1. MR=MC?
2. TR= P x Q
3. TC=ATC x Q
128. Monopoly
Marginal Cost
MC
Q
P
Average Cost
ATC
Demand
Marginal Revenue MR
$
Q
1. MR=MC?
2. TR= P x Q
3. TC=ATC x Q
129. Monopoly
Marginal Cost
MC
Q
P
Average Cost
ATC
Demand
Marginal Revenue MR
$
Q
1. MR=MC?
2. TR= P x Q
3. TC=ATC x Q
130. Monopoly
Marginal Cost
MC
Q
P
Average Cost
ATC
Demand
Marginal Revenue MR
Cost
$
Q
1. MR=MC?
2. TR= P x Q
3. TC=ATC x Q
131. Monopoly
Marginal Cost
MC
Q
P
Average Cost
ATC
Demand
Marginal Revenue MR
Cost
$
Q
1. MR=MC?
2. TR= P x Q
3. TC=ATC x Q
4. Profit =TR-TC
or (P-ATC) x Q
132. Monopoly
Marginal Cost
MC
Q
P
Average Cost
ATC
Demand
Marginal Revenue MR
Cost
$
Q
1. MR=MC?
2. TR= P x Q
3. TC=ATC x Q
4. Profit =TR-TC
or (P-ATC) x Q
133. Monopoly
Marginal Cost
MC
Q
P
Average Cost
ATC
1. MR=MC?
2. TR= P x Q
3. TC=ATC x Q
4. Profit =TR-TC
or (P-ATC) x Q
Marginal Revenue MR
Cost
$
Q
Profit
Demand
134. Monopoly
Marginal Cost
MC
Q
P
Average Cost
ATC
1. MR=MC?
2. TR= P x Q
3. TC=ATC x Q
4. Profit =TR-TC
or (P-ATC) x Q
Marginal Revenue MR
Cost
$
Q
Profit
Demand
135. Monopoly
Marginal Cost
MC
Q
P
Average Cost
ATC
Marginal Revenue MR
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
136. Monopoly
Marginal Cost
MC
Q
P
Average Cost
ATC
Marginal Revenue MR
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
137. Monopoly
Marginal Cost
MC
Q
P
Average Cost
ATC
Marginal Revenue MR
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
138. Monopoly
Marginal Cost
MC
Q
P
Average Cost
ATC
Marginal Revenue MR
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
139. Monopoly
Marginal Cost
MC
Q
P
Average Cost
ATC
Marginal Revenue MR
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