1. Neal Barnett UHS AP Microeconomics
Monopolies Redux
Neal Barnett
UHS
AP Microeconomics

4. 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

8. X-inefficiencies/Rent Seeking Activities

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

11. 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 $ 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 $ for my tin. I can get over 600 thou now.

12. 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