ECON 1B03 Lecture Notes - Lecture 22: Price Discrimination, Perfect Competition, Demand Curve
18 Oct 2015
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Public ownership: the government itself takes ownership of the monopoly (called crown. Price discrimination: business practice of selling the same good at different prices to different. Since monopolies are socially inefficient (q is lower and p is higher), sometimes the government. Competition law: legislation to prevent mergers that would make the market less competitive. Prevents a lot of smaller firms from getting together and making a big company, where they can. The government may not run efficiently, since the government doesn"t care much for cutting costs. Doing nothing: if the inefficiency is small by societies standard, the government will stay out of it may have political reasons for not getting involved. In canada, we have the canadian competition act. Regulation: government agencies regulate prices a monopoly may charge. They set the prices equal to the atc, so firms earn a normal profit, where you earn 0 economic. 0 gets involved in one of 4 ways:
