1. Monopoly and the public interest AR = D £ Q MC monopoly MR

2. AR = D £ Q MC monopoly MR Q1Q1 P1P1 AC monopoly AC 1 Monopoly and the public interest

3. AR = D £ Q MC monopoly MR Q1Q1 P1P1 AC monopoly AC 1 Monopoly and the public interest

4. AR = D £ Q MC monopoly MR Q1Q1 P1P1 AC monopoly AC 1 Why do we think Monopoly is bad?

5. AR = D £ Q MC monopoly MR Q1Q1 P1P1 AC monopoly AC 1 P PC Q PC If we had perfect competition then P=MC, andquantity is higher and quantity is higher price is lower

6. AR = D £ Q MC monopoly MR QMQM PMPM AC M MC perfect competition P PC Q PC But what if Perfect competitive firm is small and unable to exploit returns to scale AC monopoly

7. AR = D £ Q MC monopoly MR QMQM PMPM AC M MC perfect competition P PC Q PC But what if Perfect competitive firm is small and unable to exploit returns to scale AC monopoly