ajaz_eco_204_2012_2013_chapter_16_Market_Power

Ajaz_eco_204_2012_2013_chapter_16_Market_Power

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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 Case A Case B 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 , ⏟ 66 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...
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This document was uploaded on 01/19/2014.

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