Mark Hirschey管理经济学11版课件032428893X_47762.pptVIP

MANAGERIAL ECONOMICS 11th Edition By Mark Hirschey Monopoly and Monopsony Chapter 12 Chapter 12OVERVIEW Monopoly Characteristics Profit Maximization in Monopoly Markets Social Costs of Monopoly Social Benefits From Monopoly Monopoly Regulation Monopsony Antitrust Policy Competitive Strategy in Monopoly Markets Chapter 12KEY CONCEPTS monopoly price makers monopoly underproduction deadweight loss from monopoly problem wealth transfer problem natural monopoly patents regulatory lag oligopsony monopsony monopsony power bilateral monopoly antitrust laws market niche Monopoly Characteristics Basic Features A single seller. Unique product. Blockaded entry and/or exit. Imperfect dissemination of information. Opportunity for economic profits in long-run equilibrium. Examples of Monopoly Classic examples include electricity utilities, gas and sanitary services. OPEC and the NCAA are popular examples. Profit Maximization in Monopoly Markets Price/Output Decisions A monopoly firm is the market. Market and firm demand curve slopes downward. Monopoly demand curve is always above the marginal revenue curve, P = AR MR. Monopoly position allows above-normal profits. P AC in long-run equilibrium. Role of Marginal Analysis Set Mπ = MR - MC = 0 to maximize profits. MR=MC at optimal output. Social Costs of Monopoly Monopoly Underproduction Monopolists produce too little output. Monopolists charge prices that are too high. Deadweight Loss from Monopoly Monopoly markets creates a loss in social welfare due to the decline in mutually beneficial trade activity. There is also a wealth transfer problem associated with monopoly. Under monopoly, consumer surplus is transferred to producer surplus. Social Benefits From Monopoly Economies of Scale Monopoly is sometimes the natural result of vigorous competitive forces. In natural monopoly, LRAC declines continuously and one firm is most efficient. Some real-world monopolies are government-created or government-maintained. Invention and