Presentation is loading. Please wait.

Presentation is loading. Please wait.

MONOPOLY etc. Reasons for Monopoly Demand Vs. MR for a Monopolist MR and Elasticity Short Run Equilibrium of a Monopolist MR = MC, Lerner Index Monopolist.

Published byTimothy Perry Modified over 8 years ago

Similar presentations

Presentation on theme: "MONOPOLY etc. Reasons for Monopoly Demand Vs. MR for a Monopolist MR and Elasticity Short Run Equilibrium of a Monopolist MR = MC, Lerner Index Monopolist."— Presentation transcript:

1 MONOPOLY etc. Reasons for Monopoly Demand Vs. MR for a Monopolist MR and Elasticity Short Run Equilibrium of a Monopolist MR = MC, Lerner Index Monopolist has no Supply Curve Monopoly Problems Multi-plant Monopolist Price Discriminating Monopolist Monoposony – read on your own. Monopolistic Competition Game Theory

2 MONOPOLY Monos polein (single seller) Reasons for Monopoly –Barriers to entry Legal barriers to entry (patents, utilities etc) Natural Monopoly (Large Fixed costs, downward sloping AC & MC) –Imperfect factor Mobility

3 NATURAL MONOPOLY

4 Monopoly TR, AR & MR

5

6

7 MR and Elasticty

8 SR Equilibrium

9 Calculus Approach – SR Equilibrium

10 MR, MC and the Lerner Index

11

12

13 Problems from the Book Pg 388 EX 4, 5a-c 6a-b 7 8 9 11 3

14

15

16

17

Download ppt "MONOPOLY etc. Reasons for Monopoly Demand Vs. MR for a Monopolist MR and Elasticity Short Run Equilibrium of a Monopolist MR = MC, Lerner Index Monopolist."

Similar presentations

Competition In Imperfect Markets. Profit Maximization By A Monopolist The monopolist must take account of the market demand curve: - the higher the price.

Competition In Imperfect Markets. Profit Maximization By A Monopolist The monopolist must take account of the market demand curve: - the higher the price.
Pricing and Output Decisions: Imperfectly Competitive Markets

Pricing and Output Decisions: Imperfectly Competitive Markets
Market Structure and Competition

Market Structure and Competition
Monopolistic Competition

Monopolistic Competition
Chapter 7 Production, Firms and the Market. Profit & the Firm The Bottom Line Incentive and reward for risks Leads to better decision making and greater.

Chapter 7 Production, Firms and the Market. Profit & the Firm The Bottom Line Incentive and reward for risks Leads to better decision making and greater.
Theories of Imperfect Competition Major Contributors: –Piero Sraffa (1898-1983) –Joan Robinson (1903-1983) –Edward Chamberlin (1899-1967) Sraffa’s 1926.

Theories of Imperfect Competition Major Contributors: –Piero Sraffa ( ) –Joan Robinson ( ) –Edward Chamberlin ( ) Sraffa’s 1926.
Perfect Competition I.Assumptions II.Market vs. Firm demand III.Short Run Equilibrium –1.The Total Approach: Numerical Ex. –2.The Marginal Approach. a.Profits.

Perfect Competition I.Assumptions II.Market vs. Firm demand III.Short Run Equilibrium –1.The Total Approach: Numerical Ex. –2.The Marginal Approach. a.Profits.
a market structure in which there is only one seller of a good or service that has no close substitutes and entry to the market is completely blocked.

a market structure in which there is only one seller of a good or service that has no close substitutes and entry to the market is completely blocked.
Monopolistic Competition. Market Structure Product Differentiation Product Differentiation Few Many Number of Firm Differentiation Product Differentiation.

Monopolistic Competition. Market Structure Product Differentiation Product Differentiation Few Many Number of Firm Differentiation Product Differentiation.
Monopolistic competition Is Starbuck’s coffee really different from any other?

Monopolistic competition Is Starbuck’s coffee really different from any other?
Monopoly. Monopoly: Why? u Natural monopoly (increasing returns to scale), e.g. (parts of) utility companies? u Artificial monopoly –a patent; e.g. a.

Monopoly. Monopoly: Why? u Natural monopoly (increasing returns to scale), e.g. (parts of) utility companies? u Artificial monopoly –a patent; e.g. a.
Monopolistic Competition

Monopolistic Competition
Imperfect Competition Market Price Discovery #2 Imperfect Competition.

Imperfect Competition Market Price Discovery #2 Imperfect Competition.
Imperfect Competition Market Price Discovery #2 Imperfect Competition.

Imperfect Competition Market Price Discovery #2 Imperfect Competition.
Examination of the dynamics of imperfect markets with the aid of cost and revenue curves. The dynamics of imperfect markets with the aid of cost and revenue.

Examination of the dynamics of imperfect markets with the aid of cost and revenue curves. The dynamics of imperfect markets with the aid of cost and revenue.
The Production Decision of a Monopoly Firm Alternative market structures: perfect competition monopolistic competition oligopoly monopoly.

The Production Decision of a Monopoly Firm Alternative market structures: perfect competition monopolistic competition oligopoly monopoly.
 relatively small economies of scale  many firms  product differentiation  close but not perfect substitutes  product characteristics, location, services.

 relatively small economies of scale  many firms  product differentiation  close but not perfect substitutes  product characteristics, location, services.
All Rights ReservedMicroeconomics © Oxford University Press Malaysia, 2008 10– 1.

All Rights ReservedMicroeconomics © Oxford University Press Malaysia, – 1.
Chapter 8 Managing in Competitive, Monopolistic, and Monopolistically Competitive Markets Copyright © 2014 McGraw-Hill Education. All rights reserved.

Chapter 8 Managing in Competitive, Monopolistic, and Monopolistically Competitive Markets Copyright © 2014 McGraw-Hill Education. All rights reserved.
Market Dynamics and Pricing Entry and Exit in Perfect Competition and Monopoly; Monopsony; Price Discrimination; Monopolistic Competition.

Market Dynamics and Pricing Entry and Exit in Perfect Competition and Monopoly; Monopsony; Price Discrimination; Monopolistic Competition.

Similar presentations

Ads by Google