TAILIEUCHUNG - Lecture Principles of economics (Asia Global Edition) - Chapter 8

Chapter 8 - Monopoly, oligopoly, and monopolistic competition. Our agenda in chapter 7 is to develop more carefully and fully the concept of economic surplus introduced in part 1 and to investigate the conditions under which unregulated markets generate the largest possible economic surplus. We will also explore why attempts to interfere with market outcomes often lead to unintended and undesired consequences. | Monopoly, Oligopoly, and Monopolistic Competition Chapter 8 McGraw-Hill/Irwin Copyright © 2015 by McGraw-Hill Education (Asia). All rights reserved. 1 Learning Objectives Distinguish among three types of imperfectly competitive industries and describe how imperfect competition differs from perfect competition Identify the five sources of monopoly power and describe why economies of scale are the most enduring of the various sources of market power Apply the concepts of marginal cost and marginal revenue to find the output and price that maximizes a monopolist's profits Explain why the profit-maximizing output level for a monopolist is too small from society's perspective Discuss why firms offer discounts to buyers who are willing to jump a hurdle Discuss public policies that are often applied to natural monopolies 2 Imperfect Competition Imperfectly competitive firms have some ability to set their own price: they are price setters Long-run economic profits possible Reduce economic surplus Three types: Monopoly has only one seller, no close substitutes Monopolistic competition has many firms producing slightly differentiated products that are reasonably close substitutes Oligopoly has a small number of large firms producing products that are close substitutes 3 Monopolistic Competition Monopolistic Competition Number of Firms Many firms Price Limited flexibility Entry and Exit Free Product Differentiated Economic Profits Zero in long run Decisions P, Q, product differentiation Perfect Competition Many firms Price taker Free Standardized Zero in long run Q only 4 Oligopoly Oligopoly Number of Firms Few firms, each large Price Some flexibility Entry and Exit Difficult Product Differentiated or standardized Economic Profits Possible Decisions P, Q, differentiation, advertising Perfect Competition Many firms Price taker Free Standardized Zero in long run Q only 5 Imperfect Competition Examples of monopoly Electricity and Magic Cards Examples of monopolistic competition

• Kinh tế học
• Principles of economics
• Lecture Principles of economics
• Market imperfections
• The international economy
• Monopolistic competition
• Imperfect competition
• Ten principles of economics
• People face tradeoffs
• Opportunity cost
• Marginal changes
• Economics of information
• Consumer choice
• Free rider problem
• Market transactions
• Welfare Economics
• Consumer surplus
• Demand curve
• Efficiency of markets
• Nature of an externality
• Market inefficiency
• Negative externalities
• Principles of microeconomics
• Lecture Principles of microeconomics
• Scarce resources
• Scarcity implies choice
• Choice implies cost
• Principles of agricultural economics
• Agricultural economics
• Economics of agricultural production
• Theory of consumer behaviour
• Economics of market demand
• Dynamics in demand analysis
• Analysis of agricultural markets
• Agricultural markets
• Economics of trade
• Costs of taxation
• Deadweight loss
• Laffer curve
• Supply side economics
• Market forces
• Supply and demand
• Market economies
• Competitive Markets
• Thinking like an economist
• Economic models
• Circular flow diagram
• Production possibilities frontier
• The gains from trade
• Production possibilities
• Comparative advantage
• Absolute advantage
• Costs of production
• Total revenue
• Total cost
• Opportunity costs
• Price elasticity of demand
• Price elasticity
• Midpoint method
• Demand curves
• Factors of production
• Demand for labor
• Production function
• Marginal product of labor
• Controls on prices
• Price ceiling
• Price floor
• Market outcomes
• Theory of consumer choice
• Budget constraint
• Indifference curve
• Marginal rate of substitution
• Measuring nation’s income
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• Gross domestic product
• Components of GDP
• International trade
• Determinants of trade
• Equilibrium without trade
• Production and growth
• Economic growth
• Monetary system
• Functions of money
• Federal reserve
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• Open economy macroeconomics
• Economy macroeconomics
• Closed economy
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• Public goods
• Common resource
• Types of goods
• Cost benefit analysis
• Aggregate demand
• Aggregate supply
• Short run economic fluctuations
• Economic fluctuations
• Tax system
• Federal Government
• Marginal tax rate
• Budget surplus
• Macroeconomic policy
• Debate over macroeconomic policy
• Stabilize the economy
• Monetary policy