主导企业价格和输出决心-英文版.pptVIP

?2002 South-Western Publishing ;Sources of Power for a Monopolist;What Went Wrong With Apple?; Monopoly: Single Seller; Entry is Prohibited; No Close Substitutes 1. FIRM = INDUSTRY 2. MR P ;D;MARGINAL REVENUE is twice as steep as a linear demand curve;Find the monopoly quantity if: P = 100 - Q, and where MC = 20. Start where MR = MC TR = P?Q = 100?Q - Q2 MR = 100 - 2?Q = 20 80 = 2?Q QM = 40 Find Monopoly Price: PM = 100 - 40 = 60; P [ 1 + 1/ EP ] = MC; If EP = - 3 MC = 100 What’s PM ?;Wealth transfers from CONSUMERS to PRODUCERS: CS falls PS rises in monopoly Economic Profits are positive even in the Long Run P MC, price doesn’t signal cost Output is RESTRICTED Monopolists MUST restrict quantity Licenses restrict entry into occupations Dead Weight Social Loss (DWSL);Additional Problems with Monopoly;Monopoly Pricing;Limit Pricing;The competitor entrant has no demand at limit price PL.;NATURAL MONOPOLY;Solutions to the Problem of Natural Monopolies;The Regulatory Process;The revenue (R) must cover all operating costs (C) plus a permissible rate of return (k) on the rate base (V-D), where D is the accumulated depreciation and V is the value of the firms assets. R = C + (V - D)·k The price for each class of customer, residential, commercial, or industrial, must cover the costs. Utilities are permitted to price discriminate across classes of customers.;Price Discrimination;Block Pricing;Peak Load Pricing;Peak and Off-Peak Demand;General Solution