11-2MonoDem (1)

11-2MonoDem (1) - Monopoly Demand Curve Chapter152 The...

Info iconThis preview shows pages 1–6. Sign up to view the full content.

View Full Document Right Arrow Icon
    Monopoly Demand Curve Chapter 15-2
Background image of page 1

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

View Full DocumentRight Arrow Icon
The Demand Curve The Demand Curve Facing a Monopoly Firm Facing a Monopoly Firm In any market, the  industry  demand  curve is  downward-sloping . This is the  result of the  law of demand .
Background image of page 2
Monopolist is the Industry Monopolist is the Industry Critical to understanding the profit  maximization of the monopolist is  remembering that the  monopolist is  the  industry   because it is the sole producer. Therefore the monopolist confronts a  downward-sloping demand curve.  The  industry demand curve is the firm’s  demand curve.
Background image of page 3

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

View Full DocumentRight Arrow Icon
The Key Difference Between a Monopolist and a Perfect Competitor A monopolistic firm’s marginal revenue  is  not  its price Marginal revenue is always below its price Marginal revenue changes as output changes  and is not equal to the price A monopolistic firm’s output decision can affect price There is no competition in monopolistic markets so monopolists see to it that monopolists, not consumers, benefit 15-4
Background image of page 4
Marginal Revenue Recall that the  marginal revenue (MR)  is: Q TR MR =
Background image of page 5

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

View Full DocumentRight Arrow Icon
Image of page 6
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 01/13/2012 for the course ECON 102 taught by Professor Mikejavanmard during the Fall '10 term at Harvard.

Page1 / 12

11-2MonoDem (1) - Monopoly Demand Curve Chapter152 The...

This preview shows document pages 1 - 6. Sign up to view the full document.

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