Presentation is loading. Please wait.

Presentation is loading. Please wait.

Economies of scale up output Q'

Published byUrsula Müller Modified over 6 years ago

Similar presentations

Presentation on theme: "Economies of scale up output Q'"— Presentation transcript:

1 Economies of scale up output Q'
Cost LAC Q’ Output

2 Cost LAC1 LAC2 Q’ Q* Q” Output
The cost function is subadditive up to Q*, meaning a single firm can produce any output less than Q* more cheaply than 2, 3, 4, or any number of firms with each supply some fraction of Q* Cost LAC1 LAC2 Q’ Q* Q” Output

3 $ $ LAC Demand Demand LAC 1000 200 1000 MWHs MWHs
Distribution fits our “traditional” model of natural monopoly, but not generation.Hence they should be integrated only if there are economies of scope between power generation and distribution $ $ LAC Distribution Generation Demand Demand LAC 1000 200 1000 MWHs MWHs

Download ppt "Economies of scale up output Q'"

Similar presentations

Ch. 7. The factors that make it difficult to enter a market will determine the type of market structure Start-Up Costs- Technology-

Ch. 7. The factors that make it difficult to enter a market will determine the type of market structure Start-Up Costs- Technology-
Part 7 Monopoly Many markets are dominated by a single seller with market power The economic model of “pure monopoly” deals with an idealized case of a.

Part 7 Monopoly Many markets are dominated by a single seller with market power The economic model of “pure monopoly” deals with an idealized case of a.
Economies of Scope and the Learning Curve Outline 1.What are economies of scope? 2.Measuring economies of scope 3.Real world examples 4.The learning curve.

Economies of Scope and the Learning Curve Outline 1.What are economies of scope? 2.Measuring economies of scope 3.Real world examples 4.The learning curve.
 Some regulatory economists have long argued that the long distance telephone market (or ITM) has long since been “transformed” from natural monopoly.

 Some regulatory economists have long argued that the long distance telephone market (or ITM) has long since been “transformed” from natural monopoly.
COMPETITION IN ELECTRICITY DISTRIBUTION Roxana Saplacan Presented by Adekunle Dada.

COMPETITION IN ELECTRICITY DISTRIBUTION Roxana Saplacan Presented by Adekunle Dada.
Possible Barriers to Entry “a market served by a single firm” 14 Monopoly.

Possible Barriers to Entry “a market served by a single firm” 14 Monopoly.
Managerial Economics-Charles W. Upton Competition and Monopoly I A Problem.

Managerial Economics-Charles W. Upton Competition and Monopoly I A Problem.
Managing in Perfectly Competitive and Monopolistic Markets

Managing in Perfectly Competitive and Monopolistic Markets
Chapter 8 Managing in Competitive, Monopolistic, and Monopolistically Competitive Markets Copyright © 2014 McGraw-Hill Education. All rights reserved.

Chapter 8 Managing in Competitive, Monopolistic, and Monopolistically Competitive Markets Copyright © 2014 McGraw-Hill Education. All rights reserved.
Market Dynamics and Pricing Entry and Exit in Perfect Competition and Monopoly; Monopsony; Price Discrimination; Monopolistic Competition.

Market Dynamics and Pricing Entry and Exit in Perfect Competition and Monopoly; Monopsony; Price Discrimination; Monopolistic Competition.
Perfect Competition and Monopoly

Perfect Competition and Monopoly
Existence of Natural Monopoly in Multiproduct Firms Competition Policy and Market Regulation MEFI- Università di Pavia.

Existence of Natural Monopoly in Multiproduct Firms Competition Policy and Market Regulation MEFI- Università di Pavia.
Are Monopolies Desirable?

Are Monopolies Desirable?
Subadditivity of Cost Functions Lecture XX. Concepts of Subadditivity Evans, D. S. and J. J. Heckman. “A Test for Subadditivity of the Cost Function with.

Subadditivity of Cost Functions Lecture XX. Concepts of Subadditivity Evans, D. S. and J. J. Heckman. “A Test for Subadditivity of the Cost Function with.
Revision: Business Growth

Revision: Business Growth
Warm-Up, 11/5 Using a Marginal and Average Costs graph, show a firm that is losing money as some price… Then, place to the right of that a market graph.

Warm-Up, 11/5 Using a Marginal and Average Costs graph, show a firm that is losing money as some price… Then, place to the right of that a market graph.
Marketing Strategies How Image FX Fits Into the Broader Marketing Picture.

Marketing Strategies How Image FX Fits Into the Broader Marketing Picture.
Monopoly: This is a situation where a single producer (firm) is the sole producer of a good that has no close substitutes.

Monopoly: This is a situation where a single producer (firm) is the sole producer of a good that has no close substitutes.
Competition in a Free Market Economy. What is Competition? Competition is the struggle between buyers and sellers to get the best products at the lowest.

Competition in a Free Market Economy. What is Competition? Competition is the struggle between buyers and sellers to get the best products at the lowest.
Managerial Economics in a Global Economy, 5th Edition by Dominick Salvatore Chapter 8 Market Structure: Perfect Competition, Monopoly and Monopolistic.

Managerial Economics in a Global Economy, 5th Edition by Dominick Salvatore Chapter 8 Market Structure: Perfect Competition, Monopoly and Monopolistic.

Similar presentations

Ads by Google