ECO 1104 Lecture 15: Chapter 15.docx

• School: University of Ottawa
• Department: Economics
• Course: ECO 1104
• Professor: David Gray

Document Summary

Major attributes: easier than perfect competition, one firm as the market is the firm and the firm is the market, no distinction between the short run and the long run equilibria, the monopolist operates in a different market environment than the perfectly competitive firm does, and thus faces different rules of the game for exchange, we want to know about how she minds her p"s and q"s, she is a single seller due to barriers to entry, unlike the perfectly competitive firm, the monopolist is a price maker, and thus has market power, does not mean the monopolists can choose their equilibrium p and q at will, because they still face the constraint of the market d curve, pure monopoly is rare in the real world, economists use it as an illustration of undesirable economic outcomes, markets are not supposed to resemble monopolies.