Chapter 8 - Monopoly. The main contents of the chapter consist of the following: Pure monopoly, barriers to entry, perfect competition versus pure monopoly, natural monopolies, monopolistic competition.
Managerial Economics, 8e William F. Samuelson ● Stephen G. Marks Chapter Eight Monopoly Copyright © 2015 John Wiley & Sons, Inc. All rights reserved Monopoly: the earnings of many in the hands of one ~Eugene Debs Copyright © 2015 John Wiley & Sons, Inc. All rights reserved For Discussion New York City’s Taxicabs Everyone has stories to tall, good and bad, about New York cabbies Copyright © 2015 John Wiley & Sons, Inc. All rights reserved Pure Monopoly Barriers to Entry Economies of Scale Capital Requirements Pure Quality and Cost Advantages Product Differentiation Copyright © 2015 John Wiley & Sons, Inc. All rights reserved Figure 8.1 A Monopolist’s Optimal Price and Output Copyright © 2015 John Wiley & Sons, Inc. All rights reserved Figure 8.2 Possible Industry Demand Curves Copyright © 2015 John Wiley & Sons, Inc. All rights reserved Pure Monopoly (cont.) Barriers to Entry (cont.) Control of Resources Patents, Copyrights, and Other Legal Barriers Strategic Barriers Intel’s Monopoly Copyright © 2015 John Wiley & Sons, Inc. All rights reserved Perfect Competition versus Pure Monopoly Cartels Business Behavior—The OPEC Cartel Natural Monopolies Copyright © 2015 John Wiley & Sons, Inc. All rights reserved 1.3 Figure 8.3 Perfect Competition versus Pure Monopoly Copyright © 2015 John Wiley & Sons, Inc. All rights reserved Figure 8.4 A Natural Monopoly Copyright © 2015 John Wiley & Sons, Inc. All rights reserved Figure 8.5 Monopolistic Competition Copyright © 2015 John Wiley & Sons, Inc. All rights reserved ... Copyright © 2015 John Wiley & Sons, Inc. All rights reserved Figure 8. 1 A Monopolist’s Optimal Price and Output Copyright © 2015 John Wiley & Sons, Inc. All rights reserved Figure 8. 2 Possible Industry Demand Curves Copyright © 2015 John Wiley & Sons, Inc. All rights reserved... Copyright © 2015 John Wiley & Sons, Inc. All rights reserved 1.3 Figure 8. 3 Perfect Competition versus Pure Monopoly Copyright © 2015 John Wiley & Sons, Inc. All rights reserved Figure 8. 4 A Natural Monopoly Copyright © 2015 John Wiley & Sons, Inc. All rights reserved... Figure 8. 4 A Natural Monopoly Copyright © 2015 John Wiley & Sons, Inc. All rights reserved Figure 8. 5 Monopolistic Competition Copyright © 2015 John Wiley & Sons, Inc. All rights reserved