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File: Monopoly Pdf 122623 | Lecture14
monopoly monopoly monopoly why why natural monopoly increasing returns to scale e gg p parts of utilityy companies artificialartificial monopolymonopoly a patent e g a new drug sole ownership of ...

icon picture PDF Filetype PDF | Posted on 09 Oct 2022 | 4 years ago

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Partial capture of text on file. 
        Monopoly 
               Monopoly:Monopoly: Why?Why?
       Natural monopoly (increasing returns 
         to scale),), e.gg. (p(parts of)) utilityy 
         companies?
        ArtificialArtificial monopolymonopoly
         –a patent; e.g. a new drug
         –sole ownership of a resource; e.g. 
          a toll bridge
         –formation of a cartel; e.g. OPEC
            Monopoly:Monopoly: AssumptionsAssumptions
       Many buyers
        OnlyOnly oneone sellerseller ii.ee. notnot aa ppricerice-takertaker
       (Homogeneous product) 
       Perfect information
        RestrictedRestricted entryentry (and(and possiblypossibly exit)exit)
           Monopoly:Monopoly: FeaturesFeatures
      The monoppolist’s demand curve is 
       the (downward sloping) market 
       demanddemand curvecurve
      The monopolist can alter the market 
       price by adjusting its output level.
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...Monopoly why natural increasing returns to scale e gg p parts of utilityy companies artificialartificial monopolymonopoly a patent g new drug sole ownership resource toll bridge formation cartel opec assumptionsassumptions many buyers onlyonly oneone sellerseller ii ee notnot aa ppricerice takertaker homogeneous product perfect information restrictedrestricted entryentry and possiblypossibly exit featuresfeatures the monoppolist s demand curve is downward sloping market demanddemand curvecurve monopolist can alter price by adjusting its output level...

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Posted on: 09 Oct 2022 | 4 years ago
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