Econ1-Fall2010-10-Monopoly-handout - Readings Economics1

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Economics 1 rinciples of Microeconomics Principles of Microeconomics 10. Monopoly Fall 2010 Herb Newhouse 1 eadings Readings Ch. 9: Monopoly, Oligopoly and Monopolistic Competition (p. 233 – 239, 242 – 249) Imperfect Competition ve Sources of Market Power Five Sources of Market Power Profit Maximization for the Monopolist Why the Invisible Hand Breaks Down Under Monopoly y py You do NOT need to know “Economies of Scale nd the Importance of Start p Costs” (p 239 and the Importance of Start Up Costs (p. 239 242) or anything after “Why the Invisible Hand . . .” (p. 249 and above). 2 utline Outline ifferences between perfect and imperfect Differences between perfect and imperfect competition. ources of market power Sources of market power. Profit maximization for a monopolist. The invisible hand fails. Some relationships between monopoly and perfect competition. anaging monopoly Managing monopoly. 3 perfect Competition Imperfect Competition Imperfectly competitive firms have some control of p price. Long run economic profits are possible. Total economic surplus is reduced.
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This note was uploaded on 06/12/2011 for the course CS 1 taught by Professor Staff during the Fall '08 term at Cornell University (Engineering School).

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Econ1-Fall2010-10-Monopoly-handout - Readings Economics1

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