1. Microeconomics Corso E
John Hey

2. Chapter 28 Monopoly Monopsony A single seller in a market ...
...can choose the price (and the quantity)
but must take into consideration the demand for the good.
Monopsony
..can choose the price (and the quantity)
but must take into consideration the supply of the good .

3. Remember Chapter 13?

4. Monopoly A single seller in a market.
Suppose that the demand curve for the good is given by:
p = α – β y (i.e. is linear)
Total Revenue R = py = αy – β y2
Is a concave quadratic function.
Marginal Revenue = dR/dy = α – 2β y
The slope of the marginal revenue curve is twice the slope of the demand curve.

9. Monopsony A single seller in a market (for example, a labour market).
Suppose that the supply curve in the market is (drop the subscript):
w = γ + δ q (i.e. is linear)
Total Cost C = F + wq = F + γq + δ q2
Marginal Cost = dC/dq = γ + 2δ q
The slope of the Marginal Cost curve is twice the slope of the supply curve.

14. Minimum Wage Legislation

15. Chapter 28
Goodbye!