Monopolies exist because they allow firms to survive in capitalism by controlling costs through economies of scale, locations, technologies, brands and talent. Monopolies raise prices and reduce output from the competitive level, lowering total welfare. While this harms consumers, monopoly is necessary for firms to cover fixed costs and survive in capitalism. Orthodox economists emphasize perfect competition even though monopoly is the norm, in order to make capitalism appear to maximize welfare, but their model ignores economic realities.
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Monopoly Market Structure Example of Wapda, PtclArslan Khalid
Presentation on monopoly market structure by taking the example of wapda and ptcl?
Why other firms cannot enter into it?
What are the problem faced by Monopoly Market?
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Monopoly Market Structure Example of Wapda, PtclArslan Khalid
Presentation on monopoly market structure by taking the example of wapda and ptcl?
Why other firms cannot enter into it?
What are the problem faced by Monopoly Market?
A market can be defined as a group of firms willing and able to sell a similar product or service to the same potential buyers.
Imperfect competition covers all situations where there is neither pure competition nor pure monopoly.
Perfect competition and pure monopoly are very unlikely to be found in the real world.
In the real world, it is the imperfect competition lying between perfect competition and pure monopoly.
The fundamental distinguishing characteristic of imperfect competition is that average revenue curve slopes downwards throughout its length, but it slopes downwards at different rates in different categories of imperfect competition.
Monopoly refers to the market situation where there is a
Single seller selling a product which has no close substitutes.
Monopolies are characterized by a lack of economic competition to produce the good or service, a lack of viable substitute goods, and the existence of a high monopoly price well above the firm's marginal cost that leads to a high monopoly profit
The word “oligopoly” comes from the Greek “oligos” meaning "little or small” and “polein” meaning “to sell.” When “oligos” is used in the plural, it means “few” ,few firms or few sellers.
DEFINATION:
Oligopoly is that form of market where there are few firms and there is natural interdependence among the firms regarding price and output policy.
Monopolistic Competition content slideshow. Designed for the Economic A level qualification. Can be used in revision and in class.
Subtopics:
Intro to Mono Comp
Mono Comp Equilibria
Costs of Mono Comp
eWorld Cluster Development & the Globalized Supply Base (2010)Jon Hansen
eWorld Masterclass Presentation
September 28th, 2010
London, UK
One of the greatest challenges faced by both the private and public sectors in terms of driving best value decision-making, is supply base erosion. Almost irreparably damaged through ill-advised initiatives such as supply base rationalisation and low cost country sourcing (to name but two), many supplier development, engagement and utilisation programs are little more than exercises in futility. This session aims to dramatically increase your chances of success, by explaining the new dynamics of the global economy and how you can drive sustainable value through your supplier relationships.
Speaker: Jon Hansen, Procurement Insights
Perfect Competition content slideshow. Designed for the Economics A level qualification. Can be used in revision and in class.
Subtopics:
Intro to Perfect Competition
Equilibria of Perfect Competition
Market Shocks in Perfect Competition
Evaluating Perfect Competition
A market can be defined as a group of firms willing and able to sell a similar product or service to the same potential buyers.
Imperfect competition covers all situations where there is neither pure competition nor pure monopoly.
Perfect competition and pure monopoly are very unlikely to be found in the real world.
In the real world, it is the imperfect competition lying between perfect competition and pure monopoly.
The fundamental distinguishing characteristic of imperfect competition is that average revenue curve slopes downwards throughout its length, but it slopes downwards at different rates in different categories of imperfect competition.
Monopoly refers to the market situation where there is a
Single seller selling a product which has no close substitutes.
Monopolies are characterized by a lack of economic competition to produce the good or service, a lack of viable substitute goods, and the existence of a high monopoly price well above the firm's marginal cost that leads to a high monopoly profit
The word “oligopoly” comes from the Greek “oligos” meaning "little or small” and “polein” meaning “to sell.” When “oligos” is used in the plural, it means “few” ,few firms or few sellers.
DEFINATION:
Oligopoly is that form of market where there are few firms and there is natural interdependence among the firms regarding price and output policy.
Monopolistic Competition content slideshow. Designed for the Economic A level qualification. Can be used in revision and in class.
Subtopics:
Intro to Mono Comp
Mono Comp Equilibria
Costs of Mono Comp
eWorld Cluster Development & the Globalized Supply Base (2010)Jon Hansen
eWorld Masterclass Presentation
September 28th, 2010
London, UK
One of the greatest challenges faced by both the private and public sectors in terms of driving best value decision-making, is supply base erosion. Almost irreparably damaged through ill-advised initiatives such as supply base rationalisation and low cost country sourcing (to name but two), many supplier development, engagement and utilisation programs are little more than exercises in futility. This session aims to dramatically increase your chances of success, by explaining the new dynamics of the global economy and how you can drive sustainable value through your supplier relationships.
Speaker: Jon Hansen, Procurement Insights
Perfect Competition content slideshow. Designed for the Economics A level qualification. Can be used in revision and in class.
Subtopics:
Intro to Perfect Competition
Equilibria of Perfect Competition
Market Shocks in Perfect Competition
Evaluating Perfect Competition
A presentation about the many reasons professionals in the security, risk, safety, facilities, loss prevention, and investigations industries should join ASIS International (formerly the American Society for Industrial Security)
Monopolistic competition - The Four Types of Market Structure - EconomicsFaHaD .H. NooR
Monopolistic competition is a type of imperfect competition such that many producers sell products that are differentiated from one another (e.g. by branding or quality) and hence are not perfect substitutes. In monopolistic competition, a firm takes the prices charged by its rivals as given and ignores the impact of its own prices on the prices of other firms.[1][2] In the presence of coercive government, monopolistic competition will fall into government-granted monopoly. Unlike perfect competition, the firm maintains spare capacity. Models of monopolistic competition are often used to model industries. Textbook examples of industries with market structures similar to monopolistic competition include restaurants, cereal, clothing, shoes, and service industries in large cities. The "founding father" of the theory of monopolistic competition is Edward Hastings Chamberlin, who wrote a pioneering book on the subject, Theory of Monopolistic Competition (1933).[3] Joan Robinson published a book The Economics of Imperfect Competition with a comparable theme of distinguishing perfect from imperfect competition.
Monopolistically competitive markets have the following characteristics:
There are many producers and many consumers in the market, and no business has total control over the market price.
Consumers perceive that there are non-price differences among the competitors' products.
There are few barriers to entry and exit.[4]
Producers have a degree of control over price.
economics #ucp
What is 'Monopolistic Competition'
Characterizes an industry in which many firms offer products or services that are similar, but not perfect substitutes. Barriers to entry and exit in the industry are low, and the decisions of any one firm do not directly affect those of its competitors. All firms have the same, relatively low degree of market power; they are all price makers. In the long run, demand is highly elastic, meaning that it is sensitive to price changes. In the short run, economic profit is positive, but it approaches zero in the long run. Firms in monopolistic competition tend to advertise heavily.
BREAKING DOWN 'Monopolistic Competition'
Monopolistic competition is a middle ground between monopoly, on the one hand, and perfect competition (a purely theoretical state), on the other, and combines elements of each. It is a form of competition that characterizes a number of industries that are familiar to consumers in their day-to-day lives. Examples include restaurants, hair salons, clothing and consumer electronics. To illustrate the characteristics of monopolistic competition, we'll use the example of household cleaning products.
Young Tom Selleck: A Journey Through His Early Years and Rise to Stardomgreendigital
Introduction
When one thinks of Hollywood legends, Tom Selleck is a name that comes to mind. Known for his charming smile, rugged good looks. and the iconic mustache that has become synonymous with his persona. Tom Selleck has had a prolific career spanning decades. But, the journey of young Tom Selleck, from his early years to becoming a household name. is a story filled with determination, talent, and a touch of luck. This article delves into young Tom Selleck's life, background, early struggles. and pivotal moments that led to his rise in Hollywood.
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Early Life and Background
Family Roots and Childhood
Thomas William Selleck was born in Detroit, Michigan, on January 29, 1945. He was the second of four children in a close-knit family. His father, Robert Dean Selleck, was a real estate investor and executive. while his mother, Martha Selleck, was a homemaker. The Selleck family relocated to Sherman Oaks, California. when Tom was a child, setting the stage for his future in the entertainment industry.
Education and Early Interests
Growing up, young Tom Selleck was an active and athletic child. He attended Grant High School in Van Nuys, California. where he excelled in sports, particularly basketball. His tall and athletic build made him a standout player, and he earned a basketball scholarship to the University of Southern California (U.S.C.). While at U.S.C., Selleck studied business administration. but his interests shifted toward acting.
Discovery of Acting Passion
Tom Selleck's journey into acting was serendipitous. During his time at U.S.C., a drama coach encouraged him to try acting. This nudge led him to join the Hills Playhouse, where he began honing his craft. Transitioning from an aspiring athlete to an actor took time. but young Tom Selleck became drawn to the performance world.
Early Career Struggles
Breaking Into the Industry
The path to stardom was a challenging one for young Tom Selleck. Like many aspiring actors, he faced many rejections and struggled to find steady work. A series of minor roles and guest appearances on television shows marked his early career. In 1965, he debuted on the syndicated show "The Dating Game." which gave him some exposure but did not lead to immediate success.
The Commercial Breakthrough
During the late 1960s and early 1970s, Selleck began appearing in television commercials. His rugged good looks and charismatic presence made him a popular brand choice. He starred in advertisements for Pepsi-Cola, Revlon, and Close-Up toothpaste. These commercials provided financial stability and helped him gain visibility in the industry.
Struggling Actor in Hollywood
Despite his success in commercials. breaking into large acting roles remained a challenge for young Tom Selleck. He auditioned and took on small parts in T.V. shows and movies. Some of his early television appearances included roles in popular series like Lancer, The F.B.I., and Bracken's World. But, it would take a
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Meet Dinah Mattingly – Larry Bird’s Partner in Life and Loveget joys
Get an intimate look at Dinah Mattingly’s life alongside NBA icon Larry Bird. From their humble beginnings to their life today, discover the love and partnership that have defined their relationship.
240529_Teleprotection Global Market Report 2024.pdfMadhura TBRC
The teleprotection market size has grown
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compound annual growth rate (CAGR) of 28.2%. The
teleprotection market size is expected to see
exponential growth in the next few years. It will grow
to $70.77 billion in 2028 at a compound annual
growth rate (CAGR) of 26.0%.
Create a Seamless Viewing Experience with Your Own Custom OTT Player.pdfGenny Knight
As the popularity of online streaming continues to rise, the significance of providing outstanding viewing experiences cannot be emphasized enough. Tailored OTT players present a robust solution for service providers aiming to enhance their offerings and engage audiences in a competitive market. Through embracing customization, companies can craft immersive, individualized experiences that effectively hold viewers' attention, entertain them, and encourage repeat usage.
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Matt Rife's comedy tour took an unexpected turn. He had to cancel his Bloomington show due to a last-minute medical emergency. Fans in Chicago will also have to wait a bit longer for their laughs, as his shows there are postponed. Rife apologized and assured fans he'd be back on stage soon.
https://www.theurbancrews.com/celeb/matt-rife-cancels-bloomington-show/
Scandal! Teasers June 2024 on etv Forum.co.zaIsaac More
Monday, 3 June 2024
Episode 47
A friend is compelled to expose a manipulative scheme to prevent another from making a grave mistake. In a frantic bid to save Jojo, Phakamile agrees to a meeting that unbeknownst to her, will seal her fate.
Tuesday, 4 June 2024
Episode 48
A mother, with her son's best interests at heart, finds him unready to heed her advice. Motshabi finds herself in an unmanageable situation, sinking fast like in quicksand.
Wednesday, 5 June 2024
Episode 49
A woman fabricates a diabolical lie to cover up an indiscretion. Overwhelmed by guilt, she makes a spontaneous confession that could be devastating to another heart.
Thursday, 6 June 2024
Episode 50
Linda unwittingly discloses damning information. Nhlamulo and Vuvu try to guide their friend towards the right decision.
Friday, 7 June 2024
Episode 51
Jojo's life continues to spiral out of control. Dintle weaves a web of lies to conceal that she is not as successful as everyone believes.
Monday, 10 June 2024
Episode 52
A heated confrontation between lovers leads to a devastating admission of guilt. Dintle's desperation takes a new turn, leaving her with dwindling options.
Tuesday, 11 June 2024
Episode 53
Unable to resort to violence, Taps issues a verbal threat, leaving Mdala unsettled. A sister must explain her life choices to regain her brother's trust.
Wednesday, 12 June 2024
Episode 54
Winnie makes a very troubling discovery. Taps follows through on his threat, leaving a woman reeling. Layla, oblivious to the truth, offers an incentive.
Thursday, 13 June 2024
Episode 55
A nosy relative arrives just in time to thwart a man's fatal decision. Dintle manipulates Khanyi to tug at Mo's heartstrings and get what she wants.
Friday, 14 June 2024
Episode 56
Tlhogi is shocked by Mdala's reaction following the revelation of their indiscretion. Jojo is in disbelief when the punishment for his crime is revealed.
Monday, 17 June 2024
Episode 57
A woman reprimands another to stay in her lane, leading to a damning revelation. A man decides to leave his broken life behind.
Tuesday, 18 June 2024
Episode 58
Nhlamulo learns that due to his actions, his worst fears have come true. Caiphus' extravagant promises to suppliers get him into trouble with Ndu.
Wednesday, 19 June 2024
Episode 59
A woman manages to kill two birds with one stone. Business doom looms over Chillax. A sobering incident makes a woman realize how far she's fallen.
Thursday, 20 June 2024
Episode 60
Taps' offer to help Nhlamulo comes with hidden motives. Caiphus' new ideas for Chillax have MaHilda excited. A blast from the past recognizes Dintle, not for her newfound fame.
Friday, 21 June 2024
Episode 61
Taps is hungry for revenge and finds a rope to hang Mdala with. Chillax's new job opportunity elicits mixed reactions from the public. Roommates' initial meeting starts off on the wrong foot.
Monday, 24 June 2024
Episode 62
Taps seizes new information and recruits someone on the inside. Mary's new job
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From the Editor's Desk: 115th Father's day Celebration - When we see Father's day in Hindu context, Nanda Baba is the most vivid figure which comes to the mind. Nanda Baba who was the foster father of Lord Krishna is known to provide love, care and affection to Lord Krishna and Balarama along with his wife Yashoda; Letter’s to the Editor: Mother's Day - Mother is a precious life for their children. Mother is life breath for her children. Mother's lap is the world happiness whose debt can never be paid.
In the vast landscape of cinema, stories have been told, retold, and reimagined in countless ways. At the heart of this narrative evolution lies the concept of a "remake". A successful remake allows us to revisit cherished tales through a fresh lens, often reflecting a different era's perspective or harnessing the power of advanced technology. Yet, the question remains, what makes a remake successful? Today, we will delve deeper into this subject, identifying the key ingredients that contribute to the success of a remake.
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From Slave to Scourge: The Existential Choice of Django Unchained. The Philos...Rodney Thomas Jr
#SSAPhilosophy #DjangoUnchained #DjangoFreeman #ExistentialPhilosophy #Freedom #Identity #Justice #Courage #Rebellion #Transformation
Welcome to SSA Philosophy, your ultimate destination for diving deep into the profound philosophies of iconic characters from video games, movies, and TV shows. In this episode, we explore the powerful journey and existential philosophy of Django Freeman from Quentin Tarantino’s masterful film, "Django Unchained," in our video titled, "From Slave to Scourge: The Existential Choice of Django Unchained. The Philosophy of Django Freeman!"
From Slave to Scourge: The Existential Choice of Django Unchained – The Philosophy of Django Freeman!
Join me as we delve into the existential philosophy of Django Freeman, uncovering the profound lessons and timeless wisdom his character offers. Through his story, we find inspiration in the power of choice, the quest for justice, and the courage to defy oppression. Django Freeman’s philosophy is a testament to the human spirit’s unyielding drive for freedom and justice.
Don’t forget to like, comment, and subscribe to SSA Philosophy for more in-depth explorations of the philosophies behind your favorite characters. Hit the notification bell to stay updated on our latest videos. Let’s discover the principles that shape these icons and the profound lessons they offer.
Django Freeman’s story is one of the most compelling narratives of transformation and empowerment in cinema. A former slave turned relentless bounty hunter, Django’s journey is not just a physical liberation but an existential quest for identity, justice, and retribution. This video delves into the core philosophical elements that define Django’s character and the profound choices he makes throughout his journey.
Link to video: https://youtu.be/GszqrXk38qk
Skeem Saam in June 2024 available on ForumIsaac More
Monday, June 3, 2024 - Episode 241: Sergeant Rathebe nabs a top scammer in Turfloop. Meikie is furious at her uncle's reaction to the truth about Ntswaki.
Tuesday, June 4, 2024 - Episode 242: Babeile uncovers the truth behind Rathebe’s latest actions. Leeto's announcement shocks his employees, and Ntswaki’s ordeal haunts her family.
Wednesday, June 5, 2024 - Episode 243: Rathebe blocks Babeile from investigating further. Melita warns Eunice to stay clear of Mr. Kgomo.
Thursday, June 6, 2024 - Episode 244: Tbose surrenders to the police while an intruder meddles in his affairs. Rathebe's secret mission faces a setback.
Friday, June 7, 2024 - Episode 245: Rathebe’s antics reach Kganyago. Tbose dodges a bullet, but a nightmare looms. Mr. Kgomo accuses Melita of witchcraft.
Monday, June 10, 2024 - Episode 246: Ntswaki struggles on her first day back at school. Babeile is stunned by Rathebe’s romance with Bullet Mabuza.
Tuesday, June 11, 2024 - Episode 247: An unexpected turn halts Rathebe’s investigation. The press discovers Mr. Kgomo’s affair with a young employee.
Wednesday, June 12, 2024 - Episode 248: Rathebe chases a criminal, resorting to gunfire. Turf High is rife with tension and transfer threats.
Thursday, June 13, 2024 - Episode 249: Rathebe traps Kganyago. John warns Toby to stop harassing Ntswaki.
Friday, June 14, 2024 - Episode 250: Babeile is cleared to investigate Rathebe. Melita gains Mr. Kgomo’s trust, and Jacobeth devises a financial solution.
Monday, June 17, 2024 - Episode 251: Rathebe feels the pressure as Babeile closes in. Mr. Kgomo and Eunice clash. Jacobeth risks her safety in pursuit of Kganyago.
Tuesday, June 18, 2024 - Episode 252: Bullet Mabuza retaliates against Jacobeth. Pitsi inadvertently reveals his parents’ plans. Nkosi is shocked by Khwezi’s decision on LJ’s future.
Wednesday, June 19, 2024 - Episode 253: Jacobeth is ensnared in deceit. Evelyn is stressed over Toby’s case, and Letetswe reveals shocking academic results.
Thursday, June 20, 2024 - Episode 254: Elizabeth learns Jacobeth is in Mpumalanga. Kganyago's past is exposed, and Lehasa discovers his son is in KZN.
Friday, June 21, 2024 - Episode 255: Elizabeth confirms Jacobeth’s dubious activities in Mpumalanga. Rathebe lies about her relationship with Bullet, and Jacobeth faces theft accusations.
Monday, June 24, 2024 - Episode 256: Rathebe spies on Kganyago. Lehasa plans to retrieve his son from KZN, fearing what awaits.
Tuesday, June 25, 2024 - Episode 257: MaNtuli fears for Kwaito’s safety in Mpumalanga. Mr. Kgomo and Melita reconcile.
Wednesday, June 26, 2024 - Episode 258: Kganyago makes a bold escape. Elizabeth receives a shocking message from Kwaito. Mrs. Khoza defends her husband against scam accusations.
Thursday, June 27, 2024 - Episode 259: Babeile's skillful arrest changes the game. Tbose and Kwaito face a hostage crisis.
Friday, June 28, 2024 - Episode 260: Two women face the reality of being scammed. Turf is rocked by breaking
Tom Selleck Net Worth: A Comprehensive Analysisgreendigital
Over several decades, Tom Selleck, a name synonymous with charisma. From his iconic role as Thomas Magnum in the television series "Magnum, P.I." to his enduring presence in "Blue Bloods," Selleck has captivated audiences with his versatility and charm. As a result, "Tom Selleck net worth" has become a topic of great interest among fans. and financial enthusiasts alike. This article delves deep into Tom Selleck's wealth, exploring his career, assets, endorsements. and business ventures that contribute to his impressive economic standing.
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Early Life and Career Beginnings
The Foundation of Tom Selleck's Wealth
Born on January 29, 1945, in Detroit, Michigan, Tom Selleck grew up in Sherman Oaks, California. His journey towards building a large net worth began with humble origins. , Selleck pursued a business administration degree at the University of Southern California (USC) on a basketball scholarship. But, his interest shifted towards acting. leading him to study at the Hills Playhouse under Milton Katselas.
Minor roles in television and films marked Selleck's early career. He appeared in commercials and took on small parts in T.V. series such as "The Dating Game" and "Lancer." These initial steps, although modest. laid the groundwork for his future success and the growth of Tom Selleck net worth. Breakthrough with "Magnum, P.I."
The Role that Defined Tom Selleck's Career
Tom Selleck's breakthrough came with the role of Thomas Magnum in the CBS television series "Magnum, P.I." (1980-1988). This role made him a household name and boosted his net worth. The series' popularity resulted in Selleck earning large salaries. leading to financial stability and increased recognition in Hollywood.
"Magnum P.I." garnered high ratings and critical acclaim during its run. Selleck's portrayal of the charming and resourceful private investigator resonated with audiences. making him one of the most beloved television actors of the 1980s. The success of "Magnum P.I." played a pivotal role in shaping Tom Selleck net worth, establishing him as a major star.
Film Career and Diversification
Expanding Tom Selleck's Financial Portfolio
While "Magnum, P.I." was a cornerstone of Selleck's career, he did not limit himself to television. He ventured into films, further enhancing Tom Selleck net worth. His filmography includes notable movies such as "Three Men and a Baby" (1987). which became the highest-grossing film of the year, and its sequel, "Three Men and a Little Lady" (1990). These box office successes contributed to his wealth.
Selleck's versatility allowed him to transition between genres. from comedies like "Mr. Baseball" (1992) to westerns such as "Quigley Down Under" (1990). This diversification showcased his acting range. and provided many income streams, reinforcing Tom Selleck net worth.
Television Resurgence with "Blue Bloods"
Sustaining Wealth through Consistent Success
In 2010, Tom Selleck began starring as Frank Reagan i
3. Just to get it out of the way One version of this game was invented by a follower of Henry George who believed that the fundamental problem in America was monopoly over land.
4. Monopolies act knowing that they can sell more only at a lower price They think about the effect increasing production has on inframarginal sales. They produce only if marginal revenue is at least equal to marginal cost, MR=MC. They are smart. You can be too!
11. Perfect competitors lose on their last (marginal) sales Perfect competitors produce at P=MC. There, MR<MC and perfect competitor loses profits. They lose their fixed costs. Monopolists produce where MR=MC and price to sell this (lesser) quantity. Monopolists raise prices to where they can stay in business by making profits to cover fixed costs. But, they reduce social welfare by producing too little
12. A monopolist is the only seller of its products This includes companies that are the only sellers of products in their industry – such as a local cable operator. Every company that puts a name on a product is a monopolist. These include Intel, Microsoft, Boeing, Antonio’s Pizza, and Bill’s Grass. All of these have a monopoly in their particular products.
13.
14. If capitalism needs monopoly, why do orthodox economists emphasize perfect competition? Perfect competition is nicer because it aligns firm behavior with social benefits. Under PC, firms produce until MU=MC, maximizing consumer and producer welfare. Under Monopoly, firms produce less, lowering total welfare
15. Here is how Monopoly changes things They reduce output At lower output they raise prices Higher prices redistributes consumer surplus to monopolist Lower output means some lost surplus
16. Sources of monopoly and market power Economies to scale and high minimum efficient scale A typical factory to build semi-conductor chips costs $2.5-3.0 billion. Few companies can invest that much to compete with Intel.
17. Network economies and “lock in” Competition is limited where consumers need to consume the same products, or where you are locked-in to buying a company’s products because of past investment. Microsoft benefits from “network economies” because consumers want to talk to each other within Windows-world. Printer and razor companies are good at lock-in.
18. Location Control a good location and your competition is DOA. Would you want to own a parking lot next to Fenway Park? They charge $45 to park during a game.
19. Information and Brand Name How much extra will you pay for this? Do you feel safer in one of their planes?
21. Take-away Question Since monopoly is the norm, and even necessary for a capitalist market economy: why do orthodox economists largely ignore it to focus on the imaginary, and illusory, world of perfect competition? Could it be that they just want to make capitalism look good? She didn’t think so. Economist Rosa Luxemburg
22.
Editor's Notes
Monopolists are smarter than perfect competitors. They are not myopic. They realize that increasing production drives down prices, and they take this into account in planning their level of output. They produce where MC = MR or the change in revenue with increases in output, the price minus the change in price for earlier (inframarginal) units.
A perfect competitor will produce up until the point where the price equals MC. In equilibrium, production will be at A, with price PPC and quantity QPC. Perfect competitors won’t produce beyond this point because the price would fall below the rising MC; and they won’t stop until this point because all units up to QPC are produced at a MC below the price.
Perfect competition maximizes the sum of consumer and producer surplus which is the difference between the value of units, the MU or demand curve, and what they cost to produce, the MC curve. Production at point B beyond A would produce units of less value than the cost, the MU < MC. Producing at C, less than point A, would mean that some units would not be produced even though their value (MU) was greater than the cost.
While social welfare (total surplus) is maximized by perfect competition, perfectly competitive firms will loss money because they ignore the effect they have on price and neglect their fixed costs. Looking only at their marginal costs, a perfectly competitive firm may think that it is doing fine because it is producing at MC less than or equal to the price. But at the end of the year the perfect competitor will find that it has not made enough to cover its fixed costs for rent, replacing machinery, paying for marketing and office staff, and the like.
Monopolists are aware that they can produce and sell more only by lowering prices. They look at their Marginal Revenue (MR) curve which shows how much extra revenue they get from producing and selling one more unit after taking account of the lower prices they can charge to sell more . Instead of producing where P=MC, they produce where MR=MC because at any point (such as QPC) where MR<MC, they lose money even if P>MC. Because the MR includes this adjustment for lowering prices, the MR curve lies below the demand curve and will intersect the MC at a lower output (QMONO) than the output of the perfect competitor (QPC). At lower output, the price will be higher (PMONO > PPC).
Setting output where MR=MC, monopolists produce less. They lower total surplus by not producing some units where MU>MC. Raising prices on the remaining output, they transfer some surplus from consumers to themselves.
Monopolists produce less than perfect competitors because they produce at a lower MC. Because output is less, they can charge a higher price, the price on the MU (or demand) curve for the lower (monopoly) level of output. With lower output, there is a loss of surplus for both consumers and producers. At lower output and higher prices, monopolists also redistribute consumer surplus to the monopolist.
By producing where MR<MC, perfect competitors are losing on their last sales. They can sell their marginal output only by lowering prices. Indeed, they have to lower prices on all their inframarginal sales so much that what they lose is so great that the MR (the sum of the price on the last sale and the loss from lower prices) is less than MC.
Every company that sells something different from what other companies sell is a monopolist. In some cases, such as a brand-name gas station adjacent to a non-brand name station, or a station selling a different brand name, there may be little monopoly “power;” the elasticity of demand for that monopolist may be very high because consumers can easily switch to a different company. In other cases, such as the local cable company, there may be more monopoly power and, for products with a very distinct image, reputation, and high value, such as brand-name life-saving drugs still under patent protection, the monopolist may have great power because the elasticity of demand is very low.
Because they realize that higher output will drive down prices, monopolists realize they operate along a MR curve where they gain less from increasing output than the price. Setting output where MR=MC, instead of P=MC, means a lower MC. Because MC is upward sloping, a lower MC means less output. Less output means a higher price, a price above MC.
Producing where MR=MC instead of producing P=MC, monopolists produce less than perfect competitors. Less output means that some units are not produced even though MU>MC; this is a loss of consumer surplus and of producer surplus. Less output means higher prices, moving up along the demand curve. At higher prices, surplus is transferred from consumers to producers.
Many production processes are more efficient on a larger scale that allows the use of specialized production equipment. A monopolist can be more efficient than any potential entrant if it produces on a larger scale.
A monopolist may retain markets even at higher prices if its products are desired because they allow consumers to benefit from network economies that come from consuming the same products that others consume.
The greatest monopolies come from control over specialized talent because human talent cannot be reproduced.