ECON 1000 Lecture Notes - Lecture 18: Price Discrimination, Perfect Competition, Market Power

• School: York University
• Department: Economics
• Course: ECON 1000
• Professor: Ardeshir Noordeh

Document Summary

Econ1000 lecture 18 chapter 13: monopoly. Objectives: single-price monopoly, price-discriminating monopoly, determination of output and prices under monopoly, single-price monopolist, discriminating monopolist, comparing the performance and efficiency of single-price monopoly and competition, monopoly regulations. Monopoly price-setting strategies (two types): single-price: a firm sell each unit of its output for the same price to all its customers, price discrimination: a firm sells different units of a good or service for different prices. If demand is elastic, a fall in price brings an increase in total revenue. If demand is inelastic, a fall in price brings a decrease in total revenue. If demand is unit elastic, a fall in price leaves total revenue unchanged. Price discrimination is the practice of selling different units of a good or service for different prices. To be able to price discriminate, a monopoly must: Identify and separate different buyer types: sell a product that cannot be resold.