Monopoly. Competitive firm monopoly

Сентябрь 11, 2022

Главная
Экономика
Monopoly. Competitive firm monopoly

Содержание

2. 2 Competitive Firm Monopoly
3. The Tradeoff The monopoly can either choose price or quantity, but not both. The monopolist faces
4. Revenue Profit = Revenue – Total Costs Revenue = TR = Unit price • Quantity =
5. Marginal Revenue Marginal Revenue = MR= the change in total revenue from increasing output by a
6. 109 8 7 6 5 4 3 2 1 0 0 2 4 6 8 10
7. Profit Maximization ? = TR(X)- TC(X) ?’ = MR(X) – MC(X)=0 Monopoly chooses X so that
8. Monopoly Pricing MC P(X) MR(X) XM PM 8
9. 9 10 20 In a competitive market: Example: Monopoly Pricing
10. Elasticity E=1: Changing price doesn’t change Revenue – PX unchanged. E>1: Decreasing price increases Revenue –
11. Elasticity and Monopoly Pricing
12. Example
14. Скачать презентацию

Слайд 2

2
Competitive Firm
Monopoly

Слайд 3

The Tradeoff
The monopoly can either choose price or quantity, but not

both.
The monopolist faces a tradeoff between a higher price and lower sales (smaller quantity) and a lower price and higher sales (greater quantity):
P ↓ → X ↑

Слайд 4

Revenue
Profit = Revenue – Total Costs
Revenue = TR =

Unit price • Quantity = P • X
Increasing X is profitable if it increases Revenue more than it increases Costs.

Слайд 5

Marginal Revenue
Marginal Revenue = MR= the change in total revenue from

increasing output by a unit.
Marginal Cost = MC = the change in total costs from increasing output by a unit.
Increasing output (decreasing price) is profitable if MR is greater than MC.
Increasing output (decreasing price) is never profitable if MR < 0.

Слайд 6