Monopoly and Antitrust Policy 管理经济学 技术方案.pptVIP

? 2006 Prentice Hall Business Publishing Economics R. Glenn Hubbard, Anthony Patrick O’Brien—1st ed. CHAPTER 14: Monopoly and Antitrust Policy c h a p t e r fourteen Prepared by: Fernando Yvonn Quijano Monopoly and Antitrust Policy In this chapter, we will develop an economic model of monopolies that can help us to analyze their effects on the economy. After studying this chapter, you should be able to: Define monopoly. Explain the four main reasons monopolies arise. Explain how a monopoly chooses price and output. Use a graph to illustrate how monopoly affects economic surplus. Discuss government policies toward monopoly. Time Warner Rules Manhattan LEARNING OBJECTIVES 1 2 3 4 5 Is Any Firm Ever Really a Monopoly? LEARNING OBJECTIVE 1 Monopoly The only seller of a good or service that does not have a close substitute. Is Xbox a Close Substitute forPlayStation 2? 14 - 1 To many gamers, PlayStation 2 is a close substitute for Xbox. Where Do Monopolies Come From? LEARNING OBJECTIVE 2 Barriers to entry may be high enough to keep out competing firms for four main reasons: Government blocks the entry of more than one firm into a market. One firm has control of a key raw material necessary to produce a good. There are important network externalities in supplying the good or service. Economies of scale are so large that one firm has a natural monopoly. Where Do Monopolies Come From? PATENTS AND COPYRIGHTS Patent The exclusive right to a product for a period of 20 years from the date the product was invented. Copyright The legal right of the creator of a book, film, or piece of music to exclusive right to the creation. PUBLIC FRANCHISES Public franchise A designation by the government that a firm is the only legal provider of a good or service. CONTROL OF A KEY RESOURCE Another way for a firm to become a monopoly is by controlling a key resource. This happens infrequently because most resources are widely available from a variety