lecture16full

lecture16full - Can get Pareto efciency when the...

Info iconThis preview shows pages 1–23. Sign up to view the full content.

View Full Document Right Arrow Icon
Recap 1 Short and long run input demands and supply curves more responsive in the long run 2 Zero profit condition needed a fixed cost long run price determined by supply side of the market 3 Aggregate demand determined number of firms
Background image of page 1

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

View Full DocumentRight Arrow Icon
Short and long run curves
Background image of page 2
Short run equilibrium with a tax
Background image of page 3

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

View Full DocumentRight Arrow Icon
Short run equilibrium with a tax 2
Background image of page 4
Long and short run equilibrium
Background image of page 5

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

View Full DocumentRight Arrow Icon
Background image of page 6
Prices When firms produce little relative to the market, quantity they produced didn’t affect price When there is only 1 firm, choice of quantity affects price.
Background image of page 7

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

View Full DocumentRight Arrow Icon
Profit Maximization for a Monopoly max x p ( x ) x - c ( x )
Background image of page 8
Elasticity of demand
Background image of page 9

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

View Full DocumentRight Arrow Icon
Revenue and elasticity
Background image of page 10
Cobb Douglas demand
Background image of page 11

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

View Full DocumentRight Arrow Icon
Linear demand and monopoly
Background image of page 12
Linear demand and monopoly 2
Background image of page 13

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

View Full DocumentRight Arrow Icon
First degree price discrimination
Background image of page 14
Background image of page 15

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

View Full DocumentRight Arrow Icon
Background image of page 16
Background image of page 17

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

View Full DocumentRight Arrow Icon
Background image of page 18
Background image of page 19

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

View Full DocumentRight Arrow Icon
Background image of page 20
Background image of page 21

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

View Full DocumentRight Arrow Icon
Background image of page 22
Background image of page 23
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Can get Pareto efciency when the monopolist: 1 Knows how much each person is willing to pay for the product 2 Can charge people different prices Two-part Tariff Could also get Pareto efciency using a two-part tariff when consumers are identical. Third degree price discrimination Third degree price discrimination 2 Third degree price discrimination 3 Marginal revenue and marginal cost Graph of third degree price discrimination Winners and losers of third degree price discrimination Winners and losers of third degree price discrimination 2 Winners and losers of third degree price discrimination 3...
View Full Document

Page1 / 23

lecture16full - Can get Pareto efciency when the...

This preview shows document pages 1 - 23. Sign up to view the full document.

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