5.3 垄断-讲义经济学.pdf

Part V: Firm Behavior and the Organization of Industry Monopoly Contents • Why do monopolies arise? • Why is MR P for a monopolist? • How do monopolies choose their P and Q? • How do monopolies affect society’s well-being? • What can the government do about monopolies? • What is price discrimination? What is A Monopoly  Pure monopoly - A firm that is the sole seller of a product without close substitutes  The Prevalence of Monopoly  In the real world, pure monopoly is rare  Yet, many firms have market power, due to: • selling a unique variety of a product • having a large market share and few significant competitors  In many such cases, most of the results from the monopoly apply, including:  markup of price over marginal cost: P MC  deadweight loss What is A Monopoly  A monopoly is a firm that is the sole seller of a product without close substitutes. A competitive firm A monopoly firm  One producer of many  Sole producer  Has no market power  Has market power  Price taker 价格接受者  Price maker 价格决定者 Why Monopolies Arise  The main cause of monopolies is barriers to entry – Other firms cannot enter the market  Three sources of barriers to entry: 1. A single firm owns a key resource 2. The government gives a single firm the exclusive right to produce the good - E.g., franchise rights, patents copyright laws © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a passwo