2019年微观经济学培训讲义.pptVIP

* * Note that a competitive firm has the output effect but not the price effect: the competitive firm does not need to reduce its price in order to sell a larger quantity, so, for the competitive firm, MR = P. * * Here, we assume constant marginal cost for simplicity. PM and QM denote the monopoly price and quantity, respectively. PC and QC denote the competitive price and quantity, respectively. * * It’s worth mentioning the following: Most people know that monopoly changes the way the economic “pie” is divided: by charging higher prices, the monopoly gets more surplus and cons