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Lecture

4_Outline_Monopoly+and+Pricing+Strategies_update.pdf

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Department
Economics
Course
ECON 3P21
Professor
All Professors
Semester
Fall

Description
1  trategies Pricing   and   Monopoly   2    rofit, ntersect  ts  evenue  rice seller maximizes  han     ܳ  hat atrginal  es߲ܲ ߲ܳ  ingle      ri eoduct ܳ൅  ts  ccur  evenue has  he ܯܴ ൌ ܯܥ  or  uantity marginalൌ ܲ  arket  hooses      ricing ema dd ost the    rice  onopoly MongiveThemargin malonopolist’s A Monopoly • • Mon •opoly 3   yields    rofit   which Sales at  tep      ighest with  rdown      uantit es  ul uantity  ul ales  ind  hutting ‐axim zingoly  he    ne, ‐own  han for positive Profit    han Shuth thert   1: Quantity 2:     IdentifIyre   Chhegkher – – – FindiQuantity •tep 4   Maximization    rofit Monopoly 5 Pricing    onopoly  f Effects   Welfare 6    ood  urplus the  haofes Extract      o  nits  trategPricing  onopolist    ifferent  or  ricing  rices  iscriminating  iscrimination:  rice Price A different Mon •opoly • 7         each  heurve   cost  or  arket    ould  he  here  s  rice  ith  arginal  ay  ccurs  uantity different  he     same  oincid uantity  industry  rosse he  iscrimcharged  urve  ales  s  illingness  urve  oss  is Price  y  r ompetitive    e urve demand    ongiven ‐aximizing n    eadweight Eacunit MademanProfitetMonopolist Perf •ect • • • • 8    ales  iscrimination    rice Perfectntity 9   ‐ to    er  rices qual  aximize  ompanies  o separater  wo   just  harge  lan  uy ental   lus ‐nit fee heparks, ame  er  ricing      nit  et  ixed  ach  impliprofit,  ariffs  ayfor musem st   ‐ependent    ost ‐art  riExamples: maximize –   Two •uantity•o unsutmers•dvant•gearginal 10  ariffs ‐art Two   11  roups  wo  o  rice   Maximizing ‐  onsumers Profit     12  f   who ‐      ultiple  roups  elf  lternativesith on  ifferent  hoppers    harac ossibles  or  etween be  ith    ifferent  ompanies  ased  till choose  i honets distinguishye  ustomers    n  ill  lte aytives wireless cannot  fde igned, supermarket    a
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