lecture20_slides

lecture20_slides - Econ 121 Intermediate Microeconomics...

Info iconThis preview shows pages 1–7. Sign up to view the full content.

View Full Document Right Arrow Icon
Econ 121. Intermediate Microeconomics. Eduardo Faingold Yale University Lecture 20
Background image of page 1

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

View Full Document Right Arrow Icon
Outline of the course I. Introduction II. Individual choice III. Competitive markets IV. Market failure
Background image of page 2
Outline of the course I. Introduction II. Individual choice III. Competitive markets IV. Market failure ± Monopoly (Ch. 24, 25)
Background image of page 3

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

View Full Document Right Arrow Icon
Non-discrimanting Monopolist That is, a monopolist who is forced to charge a constant unit price. ± Downward sloping (inverse) demand: P.q/ ± Increasing, convex cost: C.q/ (convex cost means marginal cost increasing) ± Revenue: R.q/ D P.q/q ± Monopolist maximizes proFt R.q/ ² c.q/ over all q ³ 0 .
Background image of page 4
Non-discriminating Monopolist. Monopolist maximizes proft ….q/ D R.q/ ± C.q/ over all q ² 0 , and so the frst-order condition yields MC.q/ D MR.q/ D P.q/ C P 0 .q/q D P.q/ ± 1 C q P.q/ dP dq .q/ ƒ‚ D ± 1= j ".P.q// j ² ; since denoting by Q. ³ / the demand Function and p D P.q/ we have ".p/ D p q dQ dp .p/ D 1 q p dP dq .q/ :
Background image of page 5

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

View Full Document Right Arrow Icon
Non-discriminating Monopolist
Background image of page 6
Image of page 7
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page1 / 21

lecture20_slides - Econ 121 Intermediate Microeconomics...

This preview shows document pages 1 - 7. Sign up to view the full document.

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