Chapter10 - Part 1

Chapter10 - Part 1 - Market Power: Monopoly and Monopsony...

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

View Full Document Right Arrow Icon
Market Power: Monopoly and Monopsony Chapter 10
Background image of page 1

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

View Full DocumentRight Arrow Icon
Chapter Outline 10.1 Monopoly 10.2 Monopoly Power 10.3 Sources of Monopoly Power 10.4 The Social Costs of Monopoly Power 10.7 Limiting Market Power: The Antitrust Laws
Background image of page 2
Market Power: Monopoly and Monopsony monopoly: Market with only one seller. monopsony: Market with only one buyer. market power: Ability of a seller or buyer to affect the price of a good.
Background image of page 3

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

View Full DocumentRight Arrow Icon
Monopoly vs. Competition: Demand Curves In a competitive market, the market demand curve slopes downward. But the demand curve for any individual firm’s product is horizontal at the market price. The firm can increase Q without lowering P , so MR = P for the competitive firm. D P Q A competitive firm’s demand curve
Background image of page 4
Demand Curves A monopolist is the only seller, so it faces the market demand curve. To sell a larger Q , the firm must reduce P . Thus,
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 02/06/2012 for the course ECON 293 taught by Professor Akbulut during the Spring '11 term at South Carolina.

Page1 / 10

Chapter10 - Part 1 - Market Power: Monopoly and Monopsony...

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