This preview shows page 1. Sign up to view the full content.
Unformatted text preview: 2013) University of Toronto, Department of Economics (STG). ECO 204, S. Ajaz Hussain. Do not distribute. Summary of a monopolist regulated by a government which chooses output to maximize social welfare
If output where is less than or equal to capacity or
if ( )
() If output where
is greater than or equal to
capacity or if ( )
() “Force” the monopolist to produce where
“Force” the monopolist to charge “Force” the monopolist to produce where for all units “Force” the monopolist to charge a price between
the monopoly price. However, most texts set The following graphs depict an unregulated vs. a regulated monopolist (in the case when ( )
the regulator favors consumers over producers so that
): and ( ) we assume that Unregulated Monopolist Demand
Demand Demand ⏟ Regulated Monopolist Demand Demand ⏟ Demand ⏟ __________________________________________________________________________________________________:
Example 1: Prestige Data Services’ Commercial Data Services:
● Hours ● = $/hour ,
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. For...
View Full Document
This document was uploaded on 01/19/2014.
- Fall '14
- The Land