|
After reading this chapter, you should be able to:
-
Define what it means for a firm to have a monopoly and identify situations that could give rise to a monopoly.
-
Identify what a natural monopoly is and list all the ways that government action
leads to monopoly.
-
Explain the difference between the demand curve faced by a perfectly competitive
firm and a monopoly and difference this makes to their respective marginal
revenue curves.
-
Discuss demand elasticity in relationship to monopoly.
-
Define the profit maximizing rule for a monopolist, explain how it differs from
a perfectly competitive firm, and identify the price and output levels of a
monopolistic firm on a graph.
- Same
as #35 and, in addition, be able to calculate a monopolists profits
from a graph or from price and cost data.
-
Define what is meant by price discrimination, explain why firms like to practice
price discrimination, and explain the characteristics of markets where price
discrimination takes place.
-
Explain the efficiency characteristics of Monopolistic markets compared to
Competitive markets.
-
Explain further the inefficiencies of Monopolistic markets and the misallocation
of resource that result from them.
- Define
what is meant by Consumer Surplus and identify it on a graph.(Appendix)
|