昆明理工大学MBA中级微观第24章讲义垄断.ppt

Monopolistic Pricing Own-Price Elasticity of Demand MR y p y ( ) ( ) . ? ? ? ? ? ? ? ? 1 1 ? Suppose the monopolists marginal cost of production is constant, at $k/output unit. For a profit-maximum MR y p y k ( *) ( *) ? ? ? ? ? ? ? ? ? 1 1 ? which is p y k ( *) . ? ? 1 1 ? Monopolistic Pricing Own-Price Elasticity of Demand p y k ( *) . ? ? 1 1 ? E.g. if ? = -3 then p(y*) = 3k/2, and if ? = -2 then p(y*) = 2k. So as ? rises towards -1 the monopolist alters its output level to make the market price of its product to rise. Monopolistic Pricing Own-Price Elasticity of Demand Notice that, since MR y p y k ( *) ( *) , ? ? ? ? ? ? ? ? ? 1 1 ? p y ( *) 1 1 0 ? ? ? ? ? ? ? ? ? Monopolistic Pricing Own-Price Elasticity of Demand Notice that, since MR y p y k ( *) ( *) , ? ? ? ? ? ? ? ? ? 1 1 ? p y ( *) 1 1 0 1 1 0 ? ? ? ? ? ? ? ? ? ? ? ? ? Monopolistic Pricing Own-Price Elasticity of Demand Notice that, since MR y p y k ( *) ( *) , ? ? ? ? ? ? ? ? ? 1 1 ? p y ( *) 1 1 0 1 1 0 ? ? ? ? ? ? ? ? ? ? ? ? ? That is, 1 1 ? ? ? Monopolistic Pricing Own-Price Elasticity of Demand Notice that, since MR y p y k ( *) ( *) , ? ? ? ? ? ? ? ? ? 1 1 ? p y ( *) 1 1 0 1 1 0 ? ? ? ? ? ? ? ? ? ? ? ? ? That is, 1 1 1 ? ? ? ? ? ? ? . Monopolistic Pricing Own-Price Elasticity of Demand Notice that, since MR y p y k ( *) ( *) , ? ? ? ? ? ? ? ? ? 1 1 ? p y ( *) 1 1 0 1 1 0 ? ? ? ? ? ? ? ? ? ? ? ? ? That is, 1 1 1 ? ? ? ? ? ? ? . So a profit-maximizing monopolist always selects an output level for which market demand is own-price elastic. Markup Pricing Markup pricing : Output price is the marginal cost of production plus a “markup.” How big is a monopolists markup and how does it change with the own-price elasticity of demand? Markup Pricing p y k p y k k ( *) ( *) 1 1 1 1 1 ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? is the monopolists price. Markup Pricing p y k p y k k ( *) ( *) 1 1 1 1 1 ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? is the monopolists price. The markup is p y k k k k ( *) .