Economic Welfare: Monopoly v. Perfect Competition

Jun 16, 2013

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Agenda. Societal Welfare/Economic Welfare: CriteriaConsumer SurplusProducer SurplusCompare Monopoly and Perfect CompetitionPrice Discrimination. Economic Welfare. Consumer surplus measures economic welfare from the buyer/consumer perspective.Producer surplus measures economic welfare from the seller/producer perspective..

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Economic Welfare: Monopoly v. Perfect Competition

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Oligopoly

Oligopoly. Alexa Hartmayer. Key Concepts. A market Situation in which there are very few sellers. Each seller knows that the other sellers will react to its changes in prices and quantities. - Economics Today (pg 619). Characteristics. Small Number of Firms

845 views • 19 slides

Monopoly

Monopoly. Outline Pure monopoly Barriers to entry Monopoly compared to competition Natural monopoly The regulatory dilemma Monopolistic competition. Pure monopoly. A “pure” monopoly is a market structure in which a single seller accounts for 100 percent of market sales. .

980 views • 24 slides

Monopoly

Monopoly. Monopoly and perfect competition. Profit maximization by a monopolist. Inefficiency of a monopoly. Why do monopolies occur? Natural Monopolies. Monopoly and Perfect Competition. Perfect competition : each firm takes market price as given and decides how much to produce.

669 views • 25 slides

ECONOMIC REGULATION: Controlling price and other aspects of competition GOAL: Prevent monopoly pricing

ECONOMIC REGULATION: Controlling price and other aspects of competition GOAL: Prevent monopoly pricing. Antitrust/Competition law Acquisition of price-setting power Collusion to fix price Use of market power unfairly or unreasonably to squelch competition . Public Utility Regulation

407 views • 20 slides

Monopoly

Monopoly. Chapter 12. Introduction. Monopoly is the polar opposite of perfect competition. Monopoly is a market structure in which a single firm makes up the entire market. Introduction. Monopolies exist because of barriers to entry into a market that prevent competition.

909 views • 65 slides

Compare Monopoly to Competition

Compare Monopoly to Competition . Compare monopoly with competition. The main results here are the ideas that ----1) a monopoly firm will charge a higher price than would occur in competition and ----2) a monopoly will sell less output than would occur in competition.

255 views • 8 slides

C hapter 11

C hapter 11. Price and Output in Monopoly, Monopolistic Competition, and Perfect Competition. Economic Principles. Price, output and economic profit under conditions of monopoly Price, output and economic profit for the firm in monopolistic competition Normal profit. Economic Principles.

1.13k views • 80 slides

Imperfect Competition Shades of Gray between Perfect Competition and Monopoly

Imperfect Competition Shades of Gray between Perfect Competition and Monopoly. Microeconomics - Dr. Dennis Foster. Monopolistic Competition. Contestable Markets. Cartels. Oligopoly. Game Theory. The S p e c t r u m of Competition. Firms are primarily distinguished from each other

564 views • 22 slides

Bell Ringer

Bell Ringer. Which of the following lists includes all of the U.S. market structures? Monopoly, Oligopoly, Imperfect Competition, Perfect Competition Perfect Competition, Monopolistic Competition, Monopoly, Oligopoly Oligopoly, Monopolistic Competition, Monopoly, Economies of Scale

574 views • 42 slides

Monopoly

Monopoly. A monopoly is an industry in which there is only one producer. Thus there is no competition. A monopolist has significant market power; it can dictate the price. A monopolist does not have to continuously modify its product since there is no competition. Learning Objectives.

368 views • 20 slides

Market Dynamics and Pricing

Market Dynamics and Pricing. Entry and Exit in Perfect Competition and Monopoly; Monopsony ; Price Discrimination; Monopolistic Competition. Perfect Competition vs. Monopoly. Perfect Competition. Monopoly. Many sellers Homogeneous products (perfect substitutes) Easy entry and exit

175 views • 7 slides

Chapter 7 market structure

Chapter 7 market structure. 7.1 Perfect Competition and Monopoly. Objectives- Distinguish the features of perfect competition. Describe the barriers to entry that can create a monopoly. Compare the market structures of monopoly and perfect competition in terms of efficiency.

437 views • 22 slides

Economic Competition

Economic Competition. Forms and Consequences. Competition. The struggle among buyers and sellers to exchange goods and services while maximizing utility Perfect Competition: 5 Requirements. Group Activity. In small groups:

263 views • 11 slides

Perfect Competition, Monopoly, O ligopoly and Monopolistic Competition in Seller Markers

Perfect Competition, Monopoly, O ligopoly and Monopolistic Competition in Seller Markers. Allan Fels, Professor of Government The Australia and New Zealand School of Government (ANZSOG). 1) PERFECT COMPETITION. Characteristics Many buyers and sellers, with no dominant firm

254 views • 9 slides

Consumers and Competition

Consumers and Competition. ENCORE Workshop February 23, 2006. Most Competition Policy. Based on Economic Insights where consumer search and switching cost do not play a rule Perfect Competition / Monopoly Strategic Behavior: Collusion Merger decisions

197 views • 7 slides

Between Competition and Monopoly

9. Between Competition and Monopoly. Outline. Monopolistic Competition Oligopoly Monopolistic Competition, Oligopoly, and Public Welfare A Glance Backward: Comparing the Four Market Forms. Three Real World Puzzles. Why are there so many retailers?

615 views • 42 slides

Competition law

Competition law. Three sets of issues: Unfair competition Misuse of monopoly power Mergers. Sources of Confusion in Competition Law. Economic definition of monopoly vs. Legal definition of monopoly.

669 views • 49 slides

Monopoly

8. Monopoly. Outline. Monopoly Defined The Monopolist’s Supply Decision A Comparison of Monopoly and Perfect Competition Can Anything Good Be Said About Monopoly? Price Discrimination Under Monopoly. Monopoly Defined. Very stringent requirements for pure monopoly :

1.15k views • 31 slides

Chapter 11 – Market Structure: Perfect Competition, Monopoly, and Monopolistic Competition

Chapter 11 – Market Structure: Perfect Competition, Monopoly, and Monopolistic Competition. Perfect Competition and Monopoly: Extremes. Market structures can be represented, in terms of a firm’s market power, as a continuum: Price Takers Price Searchers. Imperfect Compeition.

1.25k views • 75 slides

The Model of Perfect Competition

The Model of Perfect Competition. Microeconomics - Dr. D. Foster. Perfect Competition - An Ideal. Firms are primarily distinguished from each other by the degree of competition they face:. Perfect Competition. Monopolistic Competition. Monopoly. Oligopoly. Profit maximization.

525 views • 21 slides

Perfect Competition vs. Monopoly

Perfect Competition vs. Monopoly. Microeconomics – Dr. D. Foster. How are they the same?. Profit maximizing. Same rule for profit maximizing. Cost structures. Calculate their economic profit as TR-TC. How are they different?. Monopoly. Perfect Competition. Only 1 firm. Entry barriers.

282 views • 6 slides

Chapter 10

Chapter 10. Market Power: Monopoly and Monopsony. Perfect Competition. Review of Perfect Competition P = LMC = LRAC Normal profits or zero economic profits in the long run Large number of buyers and sellers Homogenous product Perfect information Firm is a price taker. D. S. LMC. LRAC.

741 views • 55 slides

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