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Lecture Principles of economics (Asia Global Edition) - Chapter 8
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Lecture Principles of economics (Asia Global Edition) - Chapter 8
Minh Châu
99
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pptx
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Chapter 8 - Monopoly, oligopoly, and monopolistic competition. Our agenda in chapter 7 is to develop more carefully and fully the concept of economic surplus introduced in part 1 and to investigate the conditions under which unregulated markets generate the largest possible economic surplus. We will also explore why attempts to interfere with market outcomes often lead to unintended and undesired consequences. | Monopoly, Oligopoly, and Monopolistic Competition Chapter 8 McGraw-Hill/Irwin Copyright © 2015 by McGraw-Hill Education (Asia). All rights reserved. 1 Learning Objectives Distinguish among three types of imperfectly competitive industries and describe how imperfect competition differs from perfect competition Identify the five sources of monopoly power and describe why economies of scale are the most enduring of the various sources of market power Apply the concepts of marginal cost and marginal revenue to find the output and price that maximizes a monopolist's profits Explain why the profit-maximizing output level for a monopolist is too small from society's perspective Discuss why firms offer discounts to buyers who are willing to jump a hurdle Discuss public policies that are often applied to natural monopolies 2 Imperfect Competition Imperfectly competitive firms have some ability to set their own price: they are price setters Long-run economic profits possible Reduce economic surplus Three types: Monopoly has only one seller, no close substitutes Monopolistic competition has many firms producing slightly differentiated products that are reasonably close substitutes Oligopoly has a small number of large firms producing products that are close substitutes 3 Monopolistic Competition Monopolistic Competition Number of Firms Many firms Price Limited flexibility Entry and Exit Free Product Differentiated Economic Profits Zero in long run Decisions P, Q, product differentiation Perfect Competition Many firms Price taker Free Standardized Zero in long run Q only 4 Oligopoly Oligopoly Number of Firms Few firms, each large Price Some flexibility Entry and Exit Difficult Product Differentiated or standardized Economic Profits Possible Decisions P, Q, differentiation, advertising Perfect Competition Many firms Price taker Free Standardized Zero in long run Q only 5 Imperfect Competition Examples of monopoly Electricity and Magic Cards Examples of monopolistic competition | Monopoly, Oligopoly, and Monopolistic Competition Chapter 8 McGraw-Hill/Irwin Copyright © 2015 by McGraw-Hill Education (Asia). All rights reserved. 1 Learning Objectives Distinguish among three types of imperfectly competitive industries and describe how imperfect competition differs from perfect competition Identify the five sources of monopoly power and describe why economies of scale are the most enduring of the various sources of market power Apply the concepts of marginal cost and marginal revenue to find the output and price that maximizes a monopolist's profits Explain why the profit-maximizing output level for a monopolist is too small from society's perspective Discuss why firms offer discounts to buyers who are willing to jump a hurdle Discuss public policies that are often applied to natural monopolies 2 Imperfect Competition Imperfectly competitive firms have some ability to set their own price: they are price setters Long-run economic profits possible Reduce economic .
TÀI LIỆU LIÊN QUAN
Lecture Principles of economics (Asia Global Edition) - Chapter 1
Lecture Principles of economics (Asia Global Edition) - Chapter 2
Lecture Principles of economics (Asia Global Edition) - Chapter 3
Lecture Principles of economics (Asia Global Edition) - Chapter 4
Lecture Principles of economics (Asia Global Edition) - Chapter 5
Lecture Principles of economics (Asia Global Edition) - Chapter 6
Lecture Principles of economics (Asia Global Edition) - Chapter 7
Lecture Principles of economics (Asia Global Edition) - Chapter 8
Lecture Principles of economics (Asia Global Edition) - Chapter 9
Lecture Principles of economics (Asia Global Edition) - Chapter 10
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