April 7 - April 7 2008 Administrative Homework#5 Due TODAY...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
1 Microeconomics Principles April 7, 2008 Regulating Monopolies Administrative Homework #5 – Due TODAY Exam #3 – THIS Friday April 11th z Chapters 8, 9, 10 z NOT Chap 11 (we won’t have time) Today’s Outline Chap 10 (pgs. 200-207) z Price Discrimination z Regulating Monopoly Profit Maximization By A Pure Monopolist 0 $200 175 150 125 25 100 75 50 Price, Costs, and Revenue 1234567891 0 Quantity D MR ATC MC MR=MC P m =$122 Economic Profit Quantity, Price, Profit How does Monopoly impact Society? Evaluating Pure Monopoly z How do they compare to Pure Competition? z Allocative Efficiency z P=MC? z Productive Efficiency z Equity (Income Transfer) Allocative Efficiency Purely Competitive Market Pure Monopoly D=MR D S= MC MC P=MC= Minimum ATC MR P c Q c P c P m Q c Q m a b c 1) Profit Max for: a. Pure Competition b. Pure Monopoly Who is more efficient and why?
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
2 Productive Efficiency Use least possible resources Operate at lowest cost TEST: Is production at MES?
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page1 / 4

April 7 - April 7 2008 Administrative Homework#5 Due TODAY...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online