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monopoly - Microeconomics I Kliknij aby edytowa styl wzorca...

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5/30/11 Kliknij, aby edytować styl wzorca podtytułu Microeconomics I Monopoly
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5/30/11 Monopoly Monopoly – the only supplier of a good for which there is no close substitute Not a „price taker” One supplier Can set its price
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5/30/11 Monopoly Monopoly profit maximization : Like all firms , a monopoly maximizes its profit by setting its price or output so that its marginal revenue equals its marginal cost Welfare effects of monopoly : By setting its price above marginal cost , a monopoly creates a deadweight loss Cost advantages that create monopolies :
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5/30/11 Monopoly Profit Maximization All firms (including competitive and monopolies) maximize their profits setting marginal revenue to marginal cost. A firm’s marginal revenue curve depends of its demand curve. Monopoly’s marginal revenue curve lies below its demand curve, because its demand curve is downward
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5/30/11 Monopoly Profit Maximization Firm’s demand curve shows the price, p , it receives for selling given quantity, q The price is average revenue the firm receives , so the firm’s revenue is R = pq Marginal revenue is the change in its revenue from selling one more unit:
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5/30/11 Average and Marginal Revenue. The demand curve
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