PDF-MONOPOLY

1 Monopolies this occurs when there exists a single seller of a product that has no close substitutes. 1. . Graphs and Tables Copyright . © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.. Antitrust policy. Main purpose. : prevent monopolization, promote competition, and achieve . allocative. MOSCOW 2012 June 8. Simon P. Anderson, University of Virginia, USA. a. nd. Yves Schneider, University of Lucerne Switzerland. Back-drop. Cruise-ship mergers; can they be pro-competitive? (D . Scheffman. Banking Trade: . seigniorage. , risk-shifting, and more. By Marcus . Miller and Lei . Zhang. University of Warwick . 1. 2. ‘There are few ways a man may be more innocently employed than in getting money’.. • How Monopolies Form and Survive: Barriers to Entry. • How a Profit-Maximizing Monopoly Chooses Output and Price. • What are the Welfare Effects of a Monopoly. A . pure. monopoly is where . one. Types of Market Structure. Four principal models of market structures:. Perfect Competition. Many producers sell identical product. Monopoly. Single producer sells a single, undifferentiated product. Pure (or Perfect). Competition. Pure Monopoly. Number of Firms. VERY large number of firms. Only ONE firm. The firm IS the industry. Price making abilities of individual firms. Each firm is so small that changes in its own output do not affect market price, i.e. firms are price takers. MARKET STRUCTURE . in which only . ONE . seller sells a product for which there are no close substitutes.. A monopoly is . A PRICE SETTER. , . RESTRICTS THE MARKET . and. IS THE ONLY SELLER.. Monopoly. The US justice department filed antitrust charges against Microsoft. In 2000 the court declared that Microsoft was a monopoly.. In 2008, the European Commission sent Intel Corp. a new set of antitrust charges for abuse of dominant position with the goal of excluding its main rival from the x86 central processing units market. Marginal Revenue (MR): . Change. in the firm’s total revenue resulting from a . one unit change. in production.. Marginal Cost (MC): . Change. in the firm’s total cost resulting . from . a . one unit change . 12.1 Introducing a New Market Structure. 12.2 Sources of Market Power. 12.3 The Monopolist’s Problem. 12.4 Choosing the Optimal Quantity and Price. 12.5 The “Broken” Invisible Hand: . The Cost . The word Monopoly is a combination of two words in which “mono” implies “single” and “poly” means “seller”. Therefore, the market controlled by a sole trader is said to a Monopoly market.. DR. MRIGANKA DE SARKAR. ASSOCIATE PROFESSOR OF ECONOMICS. CONTACT: et_mit@yahoo.co.in. Monopoly: Why?. Natural monopoly (increasing returns to scale), e.g. (parts of) utility companies?. Artificial monopoly. Students will be able to identify and/or define the following terms:. Monopoly. Natural Monopoly. Patent. Do . Now. What is a barrier to entry?. Any condition that makes it difficult to enter a market.. What are the four . barriers to entry. .. Why . monopolists. are constrained by demand.. How . monopolists. set price and quantity.. What . social welfare. losses are associated with monopolies.. What the common public policy responses to monopolies are..