Last week’s pop quiz
How many units will they produce?
MC = MR
P = Q for MC
MR given in chart we made
How to get MR?
MR is the change in TR given a chance in the number of units produced
At unit 7, MR = MC
The difference between perfect competition and monopoly is the MR curve
MR = price for perfect competition
MR is not constant for monopoly
What if a monopolist could charge different prices for different people?
Negotiating used car prices
Price discrimination can be good. It decreases DWL and incr