Neal Barnett UHS AP Microeconomics Monopolies Redux Neal Barnett UHS AP Microeconomics

A Monopoly Does Not Have an S Curve A competitive firm takes P as given has a supply curve that shows how its Q depends on P. A monopoly firm is a “price-maker,” not a “price-taker” Q does not depend on P; Q and P are jointly determined by MC, MR, and the demand curve. Hence, no supply curve for monopoly. 4

X-inefficiencies/Rent Seeking Activities

Legal Cartel Theory Cartel – A group of suppliers that maintain prices at a high level and restrict competition

I have been driving for 17 years and can make 3 to $400 plus daily I have been driving for 17 years and can make 3 to $400 plus daily. I also have the option of leasing for 125 per shift, that’s $425 – 525 daily. At 6 days per week that’s $2,550-$3,150 weekly or $132600- 163800 annually. Some owner drivers book $525 daily themselves. This Tuesday I made $415 and last night $385 (started late 5pm).by myself. My gas is only $10 per shift as I have a Prius. Repairs are very low. I wont comment on your self serving remarks about mental and physical health. I am 60 years old and paid $155000 for my tin. I can get over 600 thou now.

Price Discrimination Criteria Firm must be able to set the price – have market power Firm must be able to segment the market Diff. elasticies of demand Prevent resale of the item from one market segment to another