ajaz_eco_204_2012_2013_chapter_16_Market_Power

Do not distribute summary of monopoly revenue

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: e company be in case B and produce at 100% capacity? Whenever () { ( ): () } { } { [ must always }] If the company is in case D then: { } { [ } { }] __________________________________________________________________________________________________ 7. Firms with Market Power: Profit Maximization vs. Revenue Maximization A monopolist can choose output and price to maximize revenues or maximize profits. In this section we will compare a monopolist’s RMP with the PMP. Earlier, we showed that: 54 ECO 204 Chapter 16: Analysis of Firms with Market Power (this version 2012-2013) University of Toronto, Department of Economics (STG). ECO 204, S. Ajaz Hussain. Do not distribute. Summary of Monopoly Revenue Maximization Problem for Case B Case D () When When neither Case B or C occur found by () Summary of Monopoly Profit Maximization Problem for Case B Case D () When () When neither Case B or C occur found by () () The following graphs summarize the various possible cases for a monopolist producing positive amounts of output (for conve...
View Full Document

Ask a homework question - tutors are online