E303lect39F09

E303lect39F09 - December 4 2009 HW 13 Return HW 14 Due Final Wednesday Dec 9 8:30-11:30 a.m Bring a pencil and a 4 function calculator Lecture 39

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December 4, 2009 HW 13 Return HW 14 Due . Final : Wednesday Dec 9, 8:30-11:30 a.m. Bring a pencil, and a 4 function calculator Lecture 39 REVIEW___________________________________________________: Chapter 8. The Firm in Competition. B. Monopoly 1. The difference between monopoly and competitive markets. 2. Reasons for Monopoly 3. Characterizing the problem for the Monopolist 4. The Social Cost of Monopoly 5. An analytical example 6. Optimal Pricing with limited Information PREVIEW_____________________________________________________ 5. An analytical example (continued) 6. Optimal Pricing with limited information (continued) REVIEW FOR EXAM Lecture______________________________________________________________. B . Monopoly. 5. An analytical example. TC = 400 + 10Q+ Q 2 P = 170- Q MR = 170-2Q MC= 10+2Q Thus, 4Q = 160 Q = 40 and P= 130 Consider now where the competitive firm might produce MC = ATC 10+2Q = 400/Q + 10 + Q Q 2 = 400 Q = 20 P = 50 Observation: An individual competitor produces less than a monopolist. However, the
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This note was uploaded on 04/12/2010 for the course ECON 303 taught by Professor Shrestha during the Fall '08 term at VCU.

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E303lect39F09 - December 4 2009 HW 13 Return HW 14 Due Final Wednesday Dec 9 8:30-11:30 a.m Bring a pencil and a 4 function calculator Lecture 39

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