JINGXIAN TA11 - ECON1110 TA Section 11 Professor Jennifer...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon

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

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: ECON1110 TA Section 11 Professor Jennifer Wissink TA Jingxian Zheng April 9, 2009 1 Concepts Review 1. Market Structure: Monopoly v.s. Perfectly Competitive Monopoly P.C. single firm (price maker) many firms (price taker) no close substitutes, only imperfect substitutes in related markets identical products barriers to entry and possibly exit free entry and exit full and symmetric information or possibly not full and symmetric information 2. The Simple Monopolist no price discrimination: Everyone pays the same market price for all units purchase. facing the market demand curve (declining): In monopoly, the firm is the industry. The total quantity supplied in the market is what the firm decides to produce. fi P > MR : for a market demand curve, e.g., P D = a- bQ , a , b >0 are coefficients. TR = P D Q = ( a- bQ ) Q = aQ- bQ 2 so MR = dTR dQ = a- 2 bQ and thus P D- MR = ( a- bQ )- ( a- 2 bQ ) = bQ > , if Q 6 = 0 ....
View Full Document

This note was uploaded on 09/19/2009 for the course ECON 101 taught by Professor Burkhauser during the Fall '08 term at Cornell University (Engineering School).

Page1 / 4

JINGXIAN TA11 - ECON1110 TA Section 11 Professor Jennifer...

This preview shows document pages 1 - 2. Sign up to view the full document.

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