1 / 16

Microeconomics Corso E

Microeconomics Corso E. John Hey. Chapter 28. Monopoly A single seller in a market ... ...can choose the price (and the quantity) but must take into consideration the demand for the good. Monopsony A single seller in a market ... ..can choose the price (and the quantity)

mervyn
Download Presentation

Microeconomics Corso E

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. MicroeconomicsCorso E John Hey

  2. Chapter 28 • Monopoly • A single seller in a market ... ...can choose the price (and the quantity) • but must take into consideration the demand for the good. • Monopsony • A single seller in a market ... ..can choose the price (and the quantity) • but must take into consideration the supply of the good .

  3. Remember Chapter 13?

  4. Monopoly • A single seller in a market. • Suppose that the demand curve for the good is given by: • p = α – β y (i.e. is linear) • Total Revenue R = py = αy – β y2 • Is a concave quadratic function. • Marginal Revenue = dR/dy = α – 2β y • The slope of the marginal revenue curve is twice the slope of the demand curve.

  5. Monopsony • A single seller in a market (for example, a labour market). • Suppose that the supply curve in the market is (drop the subscript): • w = γ + δ q(i.e. is linear) • Total Cost C = F + wq = F + γq + δ q2 • Marginal Cost = dC/dq= γ + 2δ q • The slope of the Marginal Cost curve is twice the slope of the supply curve.

  6. Minimum Wage Legislation

  7. Chapter 28 • Goodbye!

More Related