微观经济学-双语课件-第8章-完全垄断市场-CH8-Monopoly.pptxVIP

Chapter 8 MonopolyContentMonopoly and How It ArisesSingle-Price MonopolyPrice DiscriminationGovernment Intervention8.1 Monopoly and How It Arises8.1.1 MonopolyA monopoly is a market with a single supplier of a good or service that has no close substitutes and in which natural or legal barriers to entry prevent competitionConditions:Single sellerNo close substitutesThe firm is a “price maker”High Barriers8.1.2 How Monopoly ArisesNature monopoly Economies of scaleOne larger firm can meet the entire market demand at a lower price than two or more firms couldLegal monopolyThe granting of a public franchise, government license, patent or copyrightTechnology barrierThe concentration of ownership of a natural resource8.1.3 Monopoly price-Setting StrategiesSingle priceA monopoly that must sell each unit of its output for the same price to all its customersPrice discriminationA monopoly that is able to sell different units of a good or service for different prices8.2 Single-Price Monopoly8.2.1 Price and Marginal RevenueBecause in a monopoly there is only one firm, the firm’s demand curve is the market demand curvePA single-price monopoly’s marginal revenue curve is not its demand curveAs long as the output is positive, the marginal revenue is less than the priceD=ARMRQ05108.2.2 Marginal Revenue and ElasticityMR=P（1－1/Ed）Ed1，MR0——When quantity sold ↑, TR ↑Ed1，MR0——When quantity sold ↑, TR ↓Ed=1，MR=0——Maximum total revenue8.2.3 Output and Price DecisionShort-Run EquilibriumCondition: MR = MCPrice Decision: Using the demand curve and finding the highest price at which it can sell the profit-maximizing outputLong-Run EquilibriumCondition: MR = LMC = SMCIn a monopoly, the firm can make a positive economic profit and continue to do so indefinitely8.3 Price DiscriminationPrice Discrimination: Selling a good or service at a number of different pricesTo be able to price discriminate, a firm mustIdentify and separate different types of buyersSell a product that cannot be resoldThe key