Chapter 24 Hanons ly
Chapter 24
OThe coincidence of the inverse demand curve D and the average revenue curve AR
⚫The coincidence of the inverse demand curve D and the average revenue curve AR
边际收益曲线 E(O= 0
P AR MR D Q D O 边际收益曲线 E Q( ) 1 = MR AR
●With MR=dR/dy=p(y)[1+1/s(y)] p(y)=MC(y)/[1-1/Ie(y)]
⚫ With MR = d R / d y = p (y ) [ 1 + 1 /ε(y) ], p ( y ) = MC ( y ) / [1 – 1 / |ε( y ) | ]
oTwo equivalent ways to determine the equilibrium: MC MR,or AR MC/(1-8). Figs. FOC:MC=MR. SOC:MC'≥MR
⚫Two equivalent ways to determine the equilibrium: MC = MR, or AR = MC / ( 1– |ε| ). Figs. FOC: MC = MR. SOC: MC ’ ≥ MR ’
oThe impact of taxes on a monopoly.p425 Inefficiency of monopoly. Fig.p426 Deadweight loss of monopoly. Fig
⚫The impact of taxes on a monopoly. p425 ⚫Inefficiency of monopoly. Fig. p426 Deadweight loss of monopoly. Fig
Inefficiency of monopoly Price Deadweight lost Mc Demand,AR MR ym yc output
Inefficiency of monopoly Mc MR Demand, AR Price pm pc ym yc output Deadweight lost
Deadweight loss of monopoly PRICE 垄断收益 MC Monopoly Price P* B Competitive Demand,AR price MR output
Deadweight loss of monopoly A B C PRICE Monopoly Price P* Competitive price MC Demand, AR MR Y* output 垄断收益
Natural monopoly. Figs.p417 What causes monopolies:by nature or by permission. The minimum efficient scale factor. Regulation of monopoly:AC AR
Natural monopoly. Figs. p417 What causes monopolies: by nature or by permission. The minimum efficient scale factor. Regulation of monopoly: AC = AR
D
P D AC O Q* D AC Q O Q P D Q* D