Fitch%20-%20Class18%20F10-%20Monopoly%20-%20GRAPHS%20ONLY

Fitch%20-%20Class18%20F10-%20Monopoly%20-%20GRAPHS%20ONLY -...

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MONOPOLY 10.1 Average Revenue and Marginal Revenue Slide 1
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MONOPOLY 10.1 The Monopolist’s Output Decision Slide 2
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MONOPOLY 10.1 A Rule of Thumb for Pricing ( Q/P )( P / Q ) is the reciprocal of the elasticity of demand, 1/ E d , measured at the profit-maximizing output, and Now, because the firm’s objective is to maximize profit, we can set marginal revenue equal to marginal cost: Slide 3 which can be rearranged to give us (10.1) Equivalently, we can rearrange this equation to express price directly as a markup over marginal cost:
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Unformatted text preview: (10.2) SHIFTS IN DEMAND 10.1 Slide 4 MONOPOLY POWER THE DEMAND FOR TOOTHBRUSHES 10.2 Slide 5 MONOPOLY POWER 10.2 The Rule of Thumb for Pricing Slide 6 THE SOCIAL COSTS OF MONOPOLY POWER 10.4 Slide 7 PRICE REGULATION 10.4 Slide 8 PRICE REGULATION 10.4 Slide 9 NATURAL MONOPOLY 10.4 u natural monopoly Firm that can produce the entire output of the market at a cost lower than what it would be if there were several firms. Slide 10...
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Fitch%20-%20Class18%20F10-%20Monopoly%20-%20GRAPHS%20ONLY -...

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