11Monopoly_and_Price_Discrimination.ppt

Chapter 24,Monopoly,The coincidence of the inverse demand curve D and the average revenue curve AR.,With MR=d R/d y=p(y)1+1/(y),p(y)=MC(y)/1 1/|(y)|.,Two equivalent ways to determine the equilibrium:MC=MR,or AR=MC/(1|).Figs.FOC:MC=MR.SOC:MC MR.,The impact of taxes on a monopoly.p425Inefficiency of monopoly.Fig.p426 Deadweight loss of monopoly.Fig,Inefficiency of monopoly,Mc,MR,Demand,AR,Price,pm,pc,ym,yc,output,Deadweight lost,Deadweight loss of monopoly,A,B,C,PRICE,MonopolyPrice P*,Competitiveprice,MC,Demand,AR,MR,Y*,output,垄断收益,Natural monopoly.Figs.p417 What causes monopolies:by nature or by permission.The minimum efficient scale factor.Regulation of monopoly:AC=AR.,Chapter 25,Monopoly Behavior,Price discriminations of first-degree(perfect),of second-degree(bulk discounts),andPrice discrimination of third-degree(market segmentation):Figs.,MC(y1+y2)=MR1(y1)=MR2(y2)gives p1 1 1/|1(y1)|=p2 1 1/|2(y2)|.,