Ch24Monopoly(中级微观经济学清华大学,钟笑寒)概要1.ppt

Chapter Twenty-Four Monopoly Where We Are Now? Until now, we have covered all the contents on a partial equilibrium model of a competitive market. Consumer’s behavior and its aggregation (Ch 2-8,14,15) Producer’s behavior and its aggregation (Ch18-23) Equilibrium (Ch16) Extensions: Time and Uncertainty (Ch10-13) We will cover a general equilibrium model of all competitive markets later (Ch30-32). Where We Are Now? However, the real world is full of market imperfections. Market Power (Ch24-27): monopoly, oligopoly, monopolistic competition. Externalities and Public Goods (Ch33,35). We will study them today and later. Where We Are Now? Although we can complain that the competitive market is unrealistic, economists use this model as a benchmark for theories on more broad market (even non-market) institutions. Besides, the basic tools of optimization and equilibrium work well beyond competitive environment. Pure Monopoly A monopolized market has a single seller. The monopolist’s demand curve is the (downward sloping) market demand curve. So the monopolist can alter the market price by adjusting its output level. Pure Monopoly Pure Monopoly Suppose that the monopolist seeks to maximize its economic profit, What output level y* maximizes profit? Profit-Maximization Marginal Revenue(!) Marginal Revenue Marginal Cost Marginal Cost Profit-Maximization; An Example Profit-Maximization; An Example(…) Monopolistic Pricing Own-Price Elasticity of Demand Suppose that market demand becomes less sensitive to changes in price (i.e. the own-price elasticity of demand becomes less negative). Does the monopolist exploit this by causing the market price to rise? Monopolistic Pricing Own-Price Elasticity of Demand Monopolistic Pricing Own-Price Elasticity of Demand (!) Monopolistic Pricing Own-Price Elasticity of Demand Monopolistic Pricing Own-Price Elasticity of Demand Monopolistic Pricing Own-Price Elasticity of Demand Markup Pricing Markup pricing: Output price is the margi