第15章-垄断-曼昆经济学原理第七版.pptVIP

The Welfare Cost of Monopolies Monopoly Produce quantity where MC = MR Produces less than the socially efficient quantity of output Charge P MC Deadweight loss Triangle between the demand curve and MC curve ? 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. * Figure 8 * ? 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. The Inefficiency of Monopoly Costs and Revenue Because a monopoly charges a price above marginal cost, not all consumers who value the good at more than its cost buy it. Thus, the quantity produced and sold by a monopoly is below the socially efficient level. The deadweight loss is represented by the area of the triangle between the demand curve (which reflects the value of the good to consumers) and the marginal-cost curve (which reflects the costs of the monopoly producer). Quantity 0 Demand Marginal revenue Monopoly quantity Marginal cost Monopoly price Efficient quantity Deadweight loss The Welfare Cost of Monopolies The monopoly’s profit: a social cost? Monopoly - higher profit Not a reduction of economic welfare Bigger producer surplus Smaller consumer surplus Not a social problem Social loss = Deadweight loss From the inefficiently low quantity of output ? 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. * Price Discrimination Price discrimination Business practice Sell the same good at different prices to different cust