L22X simple monopoly jpw - Simple Monopoly Lecture 22...

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microL22-F09- http://www.arts.cornell.edu/econ/wissink/econ1110jpw/ Simple Monopoly Lecture 22 Jennifer P. Wissink ©2009 John M. Abowd and Jennifer P. Wissink, all rights reserved. November 12, 2009
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microL22-F09- http://www.arts.cornell.edu/econ/wissink/econ1110jpw/ Announcements for Fall 2009 CONGRTAS on prelim 2. See CMS for scores See your TAs for your answer books See the Problem Sets page for exams and answer keys See BlackBoard announcement for link to re-grade request AFTER adding 3.5 points to eveyone… » Mean=78.8 » Median=81 » Standard deviation=13.9 Strange: very similar distribution to last time, but this time, 232 did no worse, so we had a kind of “flip-flop” person by person. Go to MyEconLab for getting Quiz#10 in on time, it’s due tomorrow (Friday the 13 th !) I have fixed the way MEL reports points so they now make more sense (the defaults were different than the way I am doing things. Thanks to all of you who emailed me to point that out.) Total points assigned so far: 423, and so far average is only 65% Magic number 400. Total number of quiz points that will be available by the end: at least 650.
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microL22-F09- http://www.arts.cornell.edu/econ/wissink/econ1110jpw/ Natural versus Ordinary Monopoly
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microL22-F09- http://www.arts.cornell.edu/econ/wissink/econ1110jpw/ Monopoly Caveats monopoly ≠> you’re big big ≠> you’re a monopoly monopoly ≠> you have absolute and unlimited control over price monopoly ≠> you must have positive economic profit short run profit ≠> monopoly power monopoly ≠> a badly behaved firm
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microL22-F09- http://www.arts.cornell.edu/econ/wissink/econ1110jpw/ The Classic Monopoly Polar extreme from perfect competition. Monopolist is a “price maker” rather than a price taker. Cost curves are pretty much the same (except in the case of natural monopoly – which we ignore). The big change from before is in the demand side of the profit function.
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microL22-F09- http://www.arts.cornell.edu/econ/wissink/econ1110jpw/ The Simple Monopolist - Conduct The simple monopolist abides by the “law of one price.” Everyone pays the same market price for all units purchased, there is no price discrimination. The monopolist faces a
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L22X simple monopoly jpw - Simple Monopoly Lecture 22...

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