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MONOPOLY etc. Reasons for Monopoly Demand Vs. MR for a Monopolist MR and Elasticity Short Run Equilibrium of a Monopolist MR = MC, Lerner Index Monopolist.

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Presentation on theme: "MONOPOLY etc. Reasons for Monopoly Demand Vs. MR for a Monopolist MR and Elasticity Short Run Equilibrium of a Monopolist MR = MC, Lerner Index Monopolist."— Presentation transcript:

1 MONOPOLY etc. Reasons for Monopoly Demand Vs. MR for a Monopolist MR and Elasticity Short Run Equilibrium of a Monopolist MR = MC, Lerner Index Monopolist has no Supply Curve Monopoly Problems Multi-plant Monopolist Price Discriminating Monopolist Monoposony – read on your own. Monopolistic Competition Game Theory

2 MONOPOLY Monos polein (single seller) Reasons for Monopoly –Barriers to entry Legal barriers to entry (patents, utilities etc) Natural Monopoly (Large Fixed costs, downward sloping AC & MC) –Imperfect factor Mobility

3 NATURAL MONOPOLY

4 Monopoly TR, AR & MR

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7 MR and Elasticty

8 SR Equilibrium

9 Calculus Approach – SR Equilibrium

10 MR, MC and the Lerner Index

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13 Problems from the Book Pg 388 EX 4, 5a-c 6a-b 7 8 9 11 3

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