ECON 2350- Final Exam Guide - Comprehensive Notes for the exam ( 42 pages long!)
29 Mar 2018
School
Department
Course
Professor
Document Summary
A legal fiat; e. g. us postal service. At the profit-maximizing output level y* so, for y = y*, At the profit-maximizing output level the slopes of the revenue and total cost curves are equal; mr(y*) = mc(y*). Marginal revenue is the rate-of-change of revenue as the output level y increases; Marginal revenue: marginal revenue is the rate-of-change of revenue as the output level y increases; dp(y)/dy is the slope of the market inverse demand function so dp(y)/dy < 0. How should a monopoly price? u so far a monopoly has been thought of as a firm which has to sell its product at the same price to every customer. Types of price discrimination u 1st-degree: each output unit is sold at a different price. Prices may differ across buyers. u 2nd-degree: the price paid by a buyer can vary with the quantity demanded by the buyer. But all customers face the same price schedule.
