1907 Ch06-2 Imperfect Competition Economics ECONOMICS MANAGEMENT SCHOOL,TONGJI UNIVERSITY
Economics ECONOMICS & MANAGEMENT SCHOOL, TONGJI UNIVERSITY Ch06-2 Imperfect Competition
08-2 0 砂 Topics to be Discussed ·Monopoly Price Discrimination Monopolistic Competition ·0 ligopoly Economics ECONOMICS MANAGEMENT SCHOOL,TONGJI UNIVERSITY
Economics ECONOMICS & MANAGEMENT SCHOOL, TONGJI UNIVERSITY 08-2 Topics to be Discussed • Monopoly • Price Discrimination • Monopolistic Competition • Oligopoly
1907 08-3 8.1 Monopoly Monopoly 1)One seller -many buyers 2) One product (no good substitutes) 3) Barriers to entry 4)Price Maker Economics ECONOMICS MANAGEMENT SCHOOL,TONGJI UNIVERSITY
Economics ECONOMICS & MANAGEMENT SCHOOL, TONGJI UNIVERSITY 08-3 8.1 Monopoly • Monopoly 1) One seller - many buyers 2) One product (no good substitutes) 3) Barriers to entry 4) Price Maker
08-4 0 Monopoly Barriers to entry have three sources: -Ownership of a key resource. -The government gives a single firm the exclusive right to produce some good. Costs of production make a single producer more efficient than a large number of producers. Economics ECONOMICS MANAGEMENT SCHOOL,TONGJI UNIVERSITY
Economics ECONOMICS & MANAGEMENT SCHOOL, TONGJI UNIVERSITY 08-4 • Barriers to entry have three sources: – Ownership of a key resource. – The government gives a single firm the exclusive right to produce some good. – Costs of production make a single producer more efficient than a large number of producers. Monopoly
1907 08-5 A Monopoly's Revenue ·Total Revenue P×Q=TR ·Average revenue TR/Q=AR =P ·Marginal Revenue △TR△Q=MR Economics ECONOMICS MANAGEMENT SCHOOL,TONGJI UNIVERSITY
Economics ECONOMICS & MANAGEMENT SCHOOL, TONGJI UNIVERSITY 08-5 A Monopoly’s Revenue • Total Revenue P Q = TR • Average Revenue TR/Q = AR = P • Marginal Revenue TR/Q = MR