tailieunhanh - Lecture Principles of microeconomics - Chapter 9: Monopoly and other forms of imperfect competition

This chapter introduces you to imperfect competition, a market condition characterized by firms that face downward-sloping demand curves. You will learn that when markets are imperfectly competitive, they are usually not socially optimal. | Market Imperfections Part 3 What is Part 3 about? Slide 9 - Monopoly and Other Forms of Imperfect Competition (Ch. 9): Preview Slide 9 - Thinking Strategically (Ch. 10): Preview Slide 9 - Externalities and Property Rights (Ch. 11): Preview Slide 9 - The Economics of Information (Ch. 12): Preview Slide 9 - Monopoly and Other Forms of Imperfect Competition Slide 9 - What is Chapter 9 about? Slide 9 - I. Imperfect Competition and Market Power Slide 9 - A. Price Taker v. Price Setter Perfectly Competitive Firm: A firm that must take the price in the market A price taker Imperfectly Competitive Firm: A firm with at least some latitude to set its own price A price setter Slide 9 - B. Forms of Imperfect Competition Pure monopolist A firm that is the only supplier of a unique product with no close substitutes Oligopolist A firm that produces a product for which only a few rival firms produce close substitutes Monopolistically competitive firm One of a . | Market Imperfections Part 3 What is Part 3 about? Slide 9 - Monopoly and Other Forms of Imperfect Competition (Ch. 9): Preview Slide 9 - Thinking Strategically (Ch. 10): Preview Slide 9 - Externalities and Property Rights (Ch. 11): Preview Slide 9 - The Economics of Information (Ch. 12): Preview Slide 9 - Monopoly and Other Forms of Imperfect Competition Slide 9 - What is Chapter 9 about? Slide 9 - I. Imperfect Competition and Market Power Slide 9 - A. Price Taker v. Price Setter Perfectly Competitive Firm: A firm that must take the price in the market A price taker Imperfectly Competitive Firm: A firm with at least some latitude to set its own price A price setter Slide 9 - B. Forms of Imperfect Competition Pure monopolist A firm that is the only supplier of a unique product with no close substitutes Oligopolist A firm that produces a product for which only a few rival firms produce close substitutes Monopolistically competitive firm One of a large number of firms that produce slightly differentiated products that are reasonably close substitutes for one another Slide 9 - The Key Difference – elasticity of demand A perfectly competitive firm faces a perfectly elastic demand curve for its product Firms take the price in the market, where supply and demand curves intersect, as a given Charging a higher or a lower price is not feasible An imperfectly competitive firm faces a downward-sloping demand curve Firm now has a pricing decision to make Charging a price different from competitors may be advantageous Slide 9 - Fig. The Demand Curves Facing Perfectly and Imperfectly Competitive Firms Slide 9 - Market Power Market Power: A firm’s ability to raise the price of a good without losing all its sales “Market Power” does not mean that a firm can sell any quantity at any price it wishes. If price is raised, quantity demanded falls – but only somewhat, so the crucial issue is “how much?” Slide 9 - Sources of Market

• Kinh tế học
• Principles of microeconomics
• Lecture Principles of microeconomics
• Market imperfections
• Labour markets
• Imperfect competition
• Monopolistic competition
• Ten principles of economics
• Scarce resources
• Scarcity implies choice
• Choice implies cost
• Thinking like an economist
• Economic models
• Circular flow diagram
• Production possibilities frontier
• The gains from trade
• Production possibilities
• Comparative advantage
• Absolute advantage
• Market forces
• Supply and demand
• Market economies
• Competitive markets
• Price elasticity of demand
• Price elasticity
• Midpoint method
• Demand curves
• Controls on prices
• Price ceiling
• Price floor
• Market outcomes
• Market failures
• Negative externalities
• Positive externalities
• Market inefficiency
• Public goods
• Common resources
• Types of goods
• Cost benefit analysis
• Tax system
• Federal government
• Marginal tax rate
• Budget surplus
• Costs of production
• Total revenue
• Total cost
• Opportunity costs
• Firms in competitive markets
• Average revenue
• Marginal revenue
• Sunk costs
• Monopoly resources
• Government created monopolies
• Natural monopolies
• Monopoly’s revenue
• Nash equilibrium
• Equilibrium for oligopoly
• Game theory
• Long run equilibrium
• Perfect competition
• Production possibility frontier
• Opportunity cost
• Rational people
• Indirect effects
• Law of demand
• Factors change demand
• Law of supply
• Market demand
• Demand intersect
• Demand determine prices
• Change in demand
• Change in supply
• Elastic demand curve
• Policy analysis with supply
• Policy analysis with demand
• Wealth creation
• Production cost
• Total surplus
• International trade
• Additional benefits of trade
• Average costs
• Break even price
• Increasing marginal costs
• Long run analysis
• Firms profit graphically
• Accounting profit
• Market effectiveness
• Monopolist pricing
• Price discrimination
• Antitrust laws
• Disruptive innovation in oligopolies
• Predatory pricing