清华经管IMBA管理经济学课件9.pptVIP

2 of 35 ? 2008 Prentice Hall Business Publishing ? Microeconomics ? Robert S. Pindyck, 8e. Chapter 11: Pricing with Market Power * of 42 Copyright ? 2009 Pearson Education, Inc. Publishing as Prentice Hall ? Microeconomics ? Pindyck/Rubinfeld, 7e. Fernando Yvonn Quijano Prepared by: ? 2008 Prentice Hall Business Publishing ? Microeconomics ? Pindyck/Rubinfeld, 7e. Pricing with Market Power 11 C H A P T E R Midterm Distribution The grade (top corner) is the final grade (adjusted for the distribution) CHAPTER 10 OUTLINE 10.5 Monopsony 10.6 Monopsony Power 10.7 Limiting Market Power: The Antitrust Laws MONOPSONY 10.5 ● oligopsony Market with only a few buyers. ● monopsony power Buyer’s ability to affect the price of a good. ● marginal value Additional benefit derived from purchasing one more unit of a good. ● marginal expenditure Additional cost of buying one more unit of a good. ● average expenditure Price paid per unit of a good. MONOPSONY 10.5 In (a), the competitive buyer takes market price P* as given. Therefore, marginal expenditure and average expenditure are constant and equal; quantity purchased is found by equating price to marginal value (demand). In (b), the competitive seller also takes price as given. Marginal revenue and average revenue are constant and equal; quantity sold is found by equating price to marginal cost. Competitive Buyer Compared to Competitive Seller Figure 10.13 MONOPSONY 10.5 The market supply curve is monopsonist’s average expenditure curve AE. Because average expenditure is rising, marginal expenditure lies above it. The monopsonist purchases quantity Q*m, where marginal expenditure and marginal value (demand) intersect. The price paid per unit P*m is then found from the average expenditure (supply) curve. In a competitive market, price and quantity, Pc and Qc, are both higher. They are found at the point where average expenditure (supply) and marginal value (demand) intersect. Monopsonist Buyer Fi