ECON 1116 Chapter Notes - Chapter 15: Price Discrimination, Deadweight Loss, Economic Surplus
Document Summary
Chapter 15 monopoly: perfect competition (summary, a lot of firms and buyers, homogeneous products, price takers c. i. Look at demand curve to see what power firms have c. ii. Key resource required for production owned by a single firm. If monopolist owns a critical resource that is important for the production of the good b. ii. 3. b. ii. 4. b. ii. 5. No other firms can produce the good unless they find other resources. Government is the monopoly producer of nuclear weapons b. ii. 5. a. b. ii. 5. b. Uranium is owned by the government in most countries. If you find some in your backyard, government still owns the b. ii. 6. uranium. Town residents have working wells competitive model price. Only one well in the town owner of the well has monopoly on water b. ii. 6. d. Monopolies has greater market power than any firm in a competitive market b. ii. 6. e. Monopolies can ask for a high price since they"re the only firm b. iii. Government regulation producing the good/service b. iii. 1. b. iii. 2. b. iii. 3. b. iii. 4.