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.

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Presentation transcript:

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

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

NATURAL MONOPOLY

Monopoly TR, AR & MR

MR and Elasticty

SR Equilibrium

Calculus Approach – SR Equilibrium

MR, MC and the Lerner Index

Problems from the Book Pg 388 EX 4, 5a-c 6a-b

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