北大微观经济学课件(英文版)Ch24 Monopoly
经济学专业英语教程(精编版)(第二版)课件：Monopoly
(4) What kinds of policies can be taken by the government to deal with the monopolistic behaviors?
The antitrust laws give the government various ways to promote competition. They allow the government to prevent mergers.
Antitrust laws have costs as well as benefits. Sometimes companies merge not to reduce competition but to lower costs through more efficient joint production. These benefits from mergers are sometimes called synergies.
Although exclusive ownership of a key resource is a potential cause of monopoly, in practice monopolies rarely arise for this reason. Actual economies are large, and resources are owned by many people. Indeed, because many goods are traded internationally, the natural scope of their markets is often worldwide. There are, therefore, few examples of firms that own a resource for which there are no close substitutes.
微观经济学：现代观点Ch24-Monopoly
a/2b
a/b y MR(y) = a - 2by
Marginal Cost
Marginal cost is the rate-of-change of total cost as the output level y increases; dc( y) MC( y) . dy E.g. if c(y) = F + ay + by2 then
Chapter Twenty-Four
Monopoly
Pure Monopoly
A
monopolized market has a single seller. The monopolist’s demand curve is the (downward sloping) market demand curve. So the monopolist can alter the market price by adjusting its output level.
( y) p( y)y c( y).
At the profit-maximizing output level y*
d ( y) d dc( y) 0 p( y)y dy dy dy
so, for y = y*,
d dc( y) . p( y)y dy dy
Profit-Maximization
MC( y) a 2by.
$
Marginal Cost
c(y) = F + ay + by2
F $/output unit y MC(y) = a + 2by
a
y
Profit-Maximization; An Example
微观经济学英文版presentationppt课件
On behalf of the status and wealth of the senior clocks and watches, jewelry manufacturer Cartier. Since 1992 it has started business in China, at present it has three boutiques and over 30 pos.
Demand for luxury goods not only have the great potential but also can absorb the purchasing power.
Reason: The income elasticity of demand for luxury goods is greater than 1. This means that as incomes rise, the demand growth will be faster.
Analyse the luxury consumption by microeconomics
精选编辑ppt
1
Background
With the rapid development of Chinese economy, China is gradually becoming a force in luxury consumer market. So far, almost all of the world‘s luxury brands in China have branches, flagship stores also are emerging.
微观经济学英文课件Ch
• Patent laws are a form of technology policy that give the individual (or firm) with patent protection a property right over its invention.
Examples of Negative Externalities 负的外部性的例子
• Automobile exhaust • Cigarette smoking • Barking dogs (loud pets) • Loud stereos in an apartment building • Stinky Toufu
Pollution and the Social Optimum...
Price of Aluminum
Cost of pollution
Social cost
Supply
(private cost)
Optimum
Equilibrium
Demand
(private value)
0
Qoptimum QMARKE
0
QMARKET QOPTIMUM
Quantity of Robots
Positive Externalities in Production
• The intersection of the demand curve and the social-cost curve determines the optimal output level.
T
Quantity of Aluminum
Negative Externalities in Production 生产中的负的外部性
曼昆微观经济学英文版monopolyPPT课件
Natural Monopolies • An industry is a natural monopoly when a
single firm can supply a good or service to an entire market at a smaller cost than could two or more firms.
right to produce some good. • Costs of production make a single producer more
efficient than a large number of producers.
Copyright © 2004 South-Western
Copyright © 2004 South-Western
Government-Created Monopolies • Patent and copyright laws are two important
examples of how government creates a monopoly to serve the public interest.
Copyright © 2004 South-Western
Government-Created Monopolies • Governments may restrict entry by giving a
single firm the exclusive right to sell a particular good in certain markets.
Copyright © 2004 South-Western
微观经济学课件英文版 En-micro01
Relationship Between Microeconomics and Macroeconomics
Different e.g.object of study ,method of analysis Contact Microeconomics is the foundation of macroeconomics Complementary Both of them can research the same economy phenomenon from different visual angle .
01:14
5
An object of study
In short, Economics studies optimal allocation and full use of resources. In detail ：
Microeconomics What ,how,for whom Macroeconomics Resources are used fully or idly? How does inflation affect purchasing power? Can economy grow?
01:14
8
Theory System of Economics
Two branches：Microeconomics and Macroeconomics
Microeconomics Another name Theory base Basic assumptions Founder Subject Key theory Major aim Individual Economics Macroeconomics Overall Economics
微观经济学英文版PPT课件
10
2.2 the definition of microeconomics
The starting point of economics searching The definition of Microeconomics People how to make decision Why need to bargain Why need to build market economics
Economics is a study, learning selection of scarce resources with different uses; The goal is effective allocation of scarce resources to produce goods and services, and in the present or future, let them reasonable allocated to social members or group for consumption.
8
Production possibilities curve
PPC is a graph that shows the combinations of output that the economy can possibly produce given the available factors of production and the available production technology.
微观经济学英文版精品PPT课件
Chapter 1: The Fundamentals of Economics（A. Introduction）
1.2 Microeconomics and Macroeconomics
What is Microeconomics ?
It is concerned with the behavior of individual entities such as markets, firms and households.
You want to buy a computer which is $2510. while it is $2500 in the supermarket in downtown. Wherever you buy the computer, it would return to the producer if there is any problem. Where would you buy it？
There are three types of economies:
Market economy Command economy Mixed economy
Chapter 1: The Fundamentals of Economics (C. Society’s technological possibilities)
Chapter 1: The Fundamentals of Economics（A. Introduction）
1.1 Scarcity and Efficiency
What is economics ?
Economics is the study f how societies use scarce resources to produce valuable commodities and distribute them among different people.
《微观经济学microeconomics》英文版全套课件(101页)
The economic constraint:
px p1x1 ... pL xL w
The Walrasian budget set (Definition 2.D.1)
Bp,w {x RL : px w}
or
u(x* ) xl
pl
px w
Solution: Walrasian demand function x*( p, w)
Utility Maximization -- Example
Example 3.D.1: the transformed Cobb-Douglas Utility Function
Expenditure Function
Expenditure function e( p,u) Min px s.t. u(x) u {x}
Properties: 1. Homogeneous of degree of one in p 2. Strictly increasing in u and nondecreasing in p 3. Concave in p 4. Continuous in p and u
Comparative Statics – Wealth Effects
The consumer’s Engel function x( p, w)
The wealth effect xl ( p, w) / w or Dwx( p, w) Normal goods and inferior goods
A choice rule C(B) B
The weak axiom of revealed preference (WARP): if x is revealed at least as good as y, then y cannot be revealed preferred to x
北大微观经济学(英文版) ppt课件
A x1
B x2
29
A x2
Edgeworth’s Box
B 1
xB 1
OB
A 2
B 2
OA
ppt课件
A 1
A x1
xB 2
30
Pareto-Improvement
An
allocation of the endowment that improves the welfare of a consumer without reducing the welfare of another is a Pareto-improving allocation. Where are the Pareto-improving allocations?
A 1
A x1
xB 2
33
Pareto-Improvements
Since
each consumer can refuse to trade, the only possible outcomes from exchange are Pareto-improving allocations. But which particular Paretoimproving allocation will be the outcome of trade?
ppt课件
34
x2
xB 1
Pareto-Improvements A
B 1
OB
A 2
B 2
OA The set of Paretoimproving reallocations ppt课件
A 1
A x1
xB 2
35
Pareto-Improvements
微观经济学双语完全垄断市场CHMonopolyPPT课件
Monopoly
Content
Monopoly and How It Arises Single-Price Monopoly Price Discrimination Government Intervention
8.1 Monopoly and How It Arises
A monopoly that is able to sell different units of a good or service for different prices
8.2 Single-Price Monopoly
8.2.1 Price and Marginal Revenue
Because in a monopoly there is only one firm, the
8.2.3 Output and Price Decision
Short-Run Equilibrium
Condition: MR = MC Price Decision: Using the demand curve and finding the highest price at which it can sell the profit-maximizing output
Comparison of industrial water prices in some cities of China
firm’s demand curve is the market demand curve P
A single-price monopoly’s marginal revenue curve is not its demand curve
As long as the output is positive, the marginal revenue is less than the price
微观经济学双语课件
Checkpoint 1.1
5. Sort the following issues into microeconomics and macroeconomics. a. People must install catalytic（催化的） convert in their cars. b. U. S. unemployment should be much lower. c. Your local country opens a neighborhood gym（体育馆 gymnasium ） for teenager. 6. Match the following headlines with the What, How, and For whom questions. a. With more researches, we will cure cancer.（how） b. A good education is the right of every child.（whom） c. What will the government do with its budget surplus?（what）
1.2 ECONOMICS: A SOCIAL SCIENCE
Goal of economists is to discover how the economic world works. Economists distinguish between:
• Positive statements（实证经济学）: What is • Normative statements（规范经济学）: What ought to be The task of economic science:
1.1 DEFINITIONS AND QUESTIONS
微观经济学垄断行为（英文版）MonopolyBehavior
Lecture 22: Monopoly Behavior. 2007 Jeffrey A Mir on Outline1. Quantity and Quality Discounts2. Group Discounts3. Bundling4. Two-Part Tariffs1 IntroductionWe have so far studied two key components of the theory of the firm: pure competition and pure monopoly. These two extremes are important and interesting because they provide theoretical benchmarks and key insights;In general, however, we think of markets as being “in between”these two extremes in various ways. One way that real markets differ from these idealized theoretical markets is that the degree of market power is in between these extremes. Virtually every firm has some degree of market power–it can raise its price without losing all its customers–and virtually every firm faces some degree of competition from other firms.In particular, once one departs from the assumptions of perfect competition, where all firms make identical products, a host of other decisions becomes available to firms: what combination of quality and quantity to produce; how much to advertise; whether to bundle differentproducts together as one purchase; whether to offer different prices for different size purchases or to different groups, and so on.2 Quantity and Quality DiscountsOne interesting aspect of firm pricing decisions is variation in the price per unit of quantity or quality. This is one example of what is known as second-degree price discrimination. It is often referred to as non-linear pricing since the price per unit purchased is not constant, but depends on how much a given customer buys. In particular, a given customer can pay different amounts per unit depending on how much is purchased at one time. As a simple example, consider different sized bottles of ketchup. The price per ounce of ketchup differs substantially between large bottles and small bottles. Some of this difference could reflect differences in the costs of the bottles, or in handling costs related to the different sizes. But the differences are too large to be due mainly to difference in costs, and for simplicity, we ignore the possibility of cost differences here. Assume there are two different kinds of consumers, with demand curves given as follows:Graph: Demand Curves for High and Low WTP ConsumersOne kind of consumer has a high WTP, while the other has a low WTP. Ideally, the monopolist would like to identify which kind of consumer is which, keep the two kinds of consumers separate, and set different prices for the two groups. This means the monopolist would have to be able to prevent re-sale. If the monopolist cannot engage in perfect price discrimination but can separate consumers, the outcome might look like this (MC has been set to zero for ease of presentation): Graph: Monopoly Pricing with Two Identifiable Groups of ConsumersIf the monopolist can perfectly price discriminate in each sub-market, then the outcome might look like this instead:Graph: Perfect Price Discrimination with Two Identifiable Groups of ConsumersIn this case, the monopolist extracts all the surplus and also produces the efficient outcome: MC is zero, and the monopolist sells to each kind of consumer up to the point where all consumers with positive W T P for the good have purchased. In many instances, however, a monopolist can often not tell which kind of consumer is which. It can therefore not separate the consumers into two groups and set a different price for each, so, a fortiori, it cannot perfectly price discriminate.It is possible, however, to solve this dilemma. The approach consists of the monopolist offering the good in two different quantities at twodifferent prices, and then letting consumers select which (quantity, price) combination to purchase. This does not exactly replicate the solution where the monopolist can tell which kind of consumer is which, but it goes a long way in that direction. The key insight is that different kinds of consumers self-select into purchasing the appropriate package. Consider the following figure:Graph: Overlaid Demand Curves for Two Kinds of Consumersy=8 –x y=5 –xThe critical assumption is that the monopolist is now going to offer only predetermined amounts of the good. To understand exactly what is being assumed, imagine that a store sold ketchup the way gasoline stations sell gas: it has a “ketchup” pump ,and the consumer can buy oneounce, two ounces, three ounces, and so on.That is, the monopolist posts a price per unit, and the consumers decide exactly how many units to buy. In fact, ketchup and many other products are not offered this way. When you go to a grocery store, you must choose between a small-sized bottle and a large-sized Bottle .Even if you would like to buy only a tiny amount at the price per ounce of a small bottle, you have to buy the small bottle anyway. This situation occurs widely.Given this type of strategy, he monopolist has several possible choices.Pricing Strategy 1: The monopolist could offer to sell the quantity x1 at price A. That is, it only sells amounts that are “pre-packaged” to have x1 units of the good. Then type 1 consumers buy x1 and get zero surplus, while type 2 consumers buy x1 and get B as surplus. The monopolist gets 2A in profits.Graph; Pricing Strategy 1y=8 x ，y=5 xPricing Strategy 2: The monopolist could offer to sell the quantity x1 at price A, and the quantity x2 at price A+B+C. That is, it sells the good only in the amounts x1 and x2, at two different prices. As an example, think of large and small bottles of ketchup, or large and small ice cream cones. Graph: Pricing Strategy 2The problem with this strategy is that the type 2 consumers will not want to purchase the quantity x2 at price A+B+C.A type 2 consumer who made that purchase would receive zero surplus, whereas buying the quantity x1 yields surplus B. So, both types of consumers would purchase the quantity x1, and the monopolist would still get a profit of only 2A. Pricing Strategy 3: The monopolist could instead offer to sell the quantity x1 at price A, and the quantity x2 at price A+C. Type 1 consumers would continue to purchase x1.But now, type 2 consumers would be willing to purchase x2 units because that provides a surplus of B.(The surplus is the same as buying x1 units, so presumably the monopolist makes the price just a tad less than A+C.)The monopolist prefers this strategy to strategy 2 because the monopolist’s pro fit increases to 2A+C.Graph: Pricing Strategy 3Pricing Strategy 4: The monopolist can in fact do even better than strategy 3.Imagine lowering the price to type 1consumers just a bit, by the triangle labeled D. Type 1 consumers will then buy the amount x0 at price A and get zero surplus. The monopolist gets the amount A; so it receives a bit less profit from the type 1consumers. But type 2 consumers are now willing to pay A0+C+D+E0 for x2 units. This still gives a strictly positive surplus of B0.The monopolist’s pro…t increases by the amount of the trapezoid D+E.Graph: Pricing Strategy 4Continuing in this way, the monopolist will end up offering a quantity X m at price A m, and the quantity xx at price A m+ C m+ D m+ E m. One can write all this out algebraically and solve for the optimum values of each of these pieces. A different interpretation of this model is that the monopolist offers two different qualities of the good.An interesting question is whether this kind of price discrimination increases or decreases consumer plus producer surplus. In particular, what would happen if the monopolist were forced to offer only one price? The short answer is, “it depends.”One possibility is that the monopolist offers a price above the level that the low demand consumers are willing to pay, so this group is priced out of the market.3 Different Prices for Different Groups (Third-Degree PriceDiscrimination)Still another kind of price discrimination occurs when the potential customers for a given product fall into two or more readily identifiable groups, and the monopolist can easily set a different price for each of the different groupsThe different groups might correspond to different aged customers (senior citizen discounts at movie theaters; student discounts at museums); customers living in different geographic areas residents of different countries who pay different prices for prescription drugs); customers of different gender (ladies night at baseball games); and so on.To see how this works, assume two distinct groups. The monopolist can set a different price for the two groups and faces no risk of re-sale from one group to the other(this assumption applies better in some settings than others; for example, prescription drugs sold at low prices in Canada are routinely re-exported to the United States).The inverse demand functions of the two groups are:p1(y) p2(y) and monopolist’s cost function is c (y1+y2)The monopolist’s problem is thereforeMax y1; y2p1 (y1)y1+p2(y2)y2 c(y1+y2)with FOC isThat is, the MC of producing an extra unit must be the same as the MR in each market. The monopolist accomplishes this by offering different amounts for sale in the two markets. To get more intuition about how this works, it is useful to re-write these conditions in terms of elasticities. Applying our earlier formulas, we getThus, if demand is less elastic in market 1 than in market 2(1>2),then it turns out that p1>p2.The market in which demand is(relatively)inelastic is the market with the higher price.4 BundlingA still different kind of price discrimination can occur when firms sell goods in bundles. Standard examples include software suites; hardware sold with software loaded; sets of golf clubs; vacation packages consisting of air fare, car, and hotel; and so on.One possible reason for bundling is costs; in some instances, it is cheaper to sell the two different goods jointly. Relatedly, in some instances, two goods are highly complementary; for example, a spell-checker and a word-processor. In fact, bundling is far and away the norm. Think about a computer; it bundles memory chips, cables, diskdrives, and so on. One can, in fact, buy all these things separately and assemble one’s own computer.Or think about ice cream; it is just a particular bundling of cream, sugar, chocolate (no raisins), and so on. Viewed in this way, everything is a “bundled” good to some degree .Cost considerations (and comparative advantage)unquestionably play a key role in determining which bundles are provided in the market place. Dell has a big comparative advantage over most of us in assembling computer parts to make a computer. But bundling can also be the profit-maximizing response to certain kinds of consumer preferences. To see this, consider the following table:WP SpreadsheetType A 120 100Type B 100 120The table shows the W T P of type A and type B consumers for a word processing program and a spreadsheet program. We assume that the MC of producing either kind of program is zero and that the W T P for a bundle is exactly the sum of the two W T P s.The question is how a monopolist selling these two programs should market them.Strategy 1: The monopolist could simply sell each item separately. The profit maximizing price is$100 for each of the two programs. The monopolist sells one unit of each kind of software to each type ofconsumer and earns a profit of$400.Strategy 2: The monopolist could instead sell the two programs bundled for a price of$220.Type A and type B consumers will each buy one bundle. The monopolist makes a profit of$440.The key is that when a monopolist sells to different people, and it sells to everyone at the same price, the price is determined by the lowest W T P. The greater the dispersion in W T P, the lower the maximum price the monopolist can charge will be.By bundling, the monopolist, in effect, reduces the dispersion in W T P.5 Two-Part TariffsAnother common kind of price discrimination is two-part tariffs. This means a pricing structure in which customers pay a fixed fee to get access to the good in question and then a marginal fee per unit of the good actually purchased.The classic illustration is amusement parks (Disneyland).A consumer pays a fixed amount (e.g.,$100)to enter the park, and then a marginal fee(in the case of Disneyland,$0)per ride.In other applications, the marginal fee is not necessarily zero, but it is small compared to the entry fee. For example, the initiation fee at a country club might be$100,000, while the cost per round of golf is only$20.Other examples of two-part tariffs include razors and razor blades; cameras and film; and so on.We can model this as follows.Graph: Two Part TariffsThis portrays an individual consumer’s demand.The monopolist could set a price above p, but this would not extract all the surplus from this consumer.So, instead, the monopolist can charge a fixed fee equal to the value of area A, and then set a marginal fee equal to marginal cost.In this manner, the monopolist extracts all the surplus (and also provides the efficient quantity of rides).6 SummaryThis has been a quick overview of the most common forms of price discrimination and related monopoly behavior. The examples show first that a variety of common business practices make sense as ways that monopoly sellers can enhance their profit.。
- 1、下载文档前请自行甄别文档内容的完整性，平台不提供额外的编辑、内容补充、找答案等附加服务。
- 2、"仅部分预览"的文档,不可在线预览部分如存在完整性等问题,可反馈申请退款(可完整预览的文档不适用该条件!)。
- 3、如文档侵犯您的权益，请联系客服反馈,我们会尽快为您处理(人工客服工作时间：9:00-18:30)。
2012-10-9
中级微观经济学
Profit-Maximization; An Example
At the profit-maximizing output level y*, MR(y*) = MC(y*). So if p(y) = a - by and if c(y) = F + ay + by2 then
dp( y) dy
.
dp(y)/dy is the slope of the market inverse demand function so dp(y)/dy < 0. Therefore
MR( y) p( y) y dp( y) dy p( y)
for y monopolies? – a legal fiat; e.g. US Postal Service
2012-10-9
中级微观经济学
Why Monopolies?
What
causes monopolies? – a legal fiat; e.g. US Postal Service – a patent; e.g. a new drug
MR( y*) a 2by* a 2by* MC( y*)
and the profit-maximizing output level is
y* aa 2(b b )
aa 2(b b )
causing the market price to be
p( y*) a by* a b
p(y) = a - by MC(y) = a + 2by
a
y* aa 2( b b )
2012-10-9
y MR(y) = a - 2by
中级微观经济学
Monopolistic Pricing & Own-Price Elasticity of Demand
Suppose
that market demand becomes less sensitive to changes in price (i.e. the own-price elasticity of demand becomes less negative). Does the monopolist exploit this by causing the market price to rise?
2012-10-9
中级微观经济学
Why Monopolies?
What
causes monopolies? – a legal fiat; e.g. US Postal Service – a patent; e.g. a new drug – sole ownership of a resource; e.g. a toll highway – formation of a cartel; e.g. OPEC – large economies of scale; e.g. local utility companies.
中级微观经济学
2012-10-9
Pure Monopoly
Suppose
that the monopolist seeks to maximize its economic profit,
( y) p( y)y c( y).
What
output level y* maximizes profit?
2012-10-9 中级微观经济学
y
Marginal Revenue
Marginal revenue is the rate-of-change of revenue as the output level y increases;
MR( y) d dy
p( y)y p( y) y
$/output unit a p(y) = a - by MC(y) = a + 2by
a
y* aa 2( b b )
2012-10-9
y MR(y) = a - 2by
中级微观经济学
Profit-Maximization; An Example
$/output unit a
p( y*) ab aa 2( b b )
Marginal Revenue
E.g. if p(y) = a - by then R(y) = p(y)y = ay - by2 and so MR(y) = a - 2by < a - by = p(y) for y > 0.
2012-10-9
中级微观经济学
Marginal Revenue
中级微观经济学
2012-10-9
Pure Monopoly
$/output unit p(y)
Higher output y causes a lower market price, p(y).
Output Level, y
2012-10-9 中级微观经济学
Why Monopolies?
What
2012-10-9 中级微观经济学
d
p( y)y
dc( y)
0
Profit-Maximization
$
R(y) = p(y)y
y
2012-10-9
中级微观经济学
Profit-Maximization
$
R(y) = p(y)y c(y)
y
2012-10-9
中级微观经济学
Profit-Maximization
Marginal Cost
Marginal cost is the rate-of-change of total cost as the output level y increases;
MC( y) dc( y) dy .
E.g. if c(y) = F + ay + by2 then
MC( y) a 2by.
dp( y) dy
.
2012-10-9
中级微观经济学
Marginal Revenue
Marginal revenue is the rate-of-change of revenue as the output level y increases;
MR( y) d dy
p( y)y p( y) y
$
R(y) = p(y)y c(y)
y
(y)
2012-10-9 中级微观经济学
Profit-Maximization
$
R(y) = p(y)y c(y)
y*
y
(y)
2012-10-9
中级微观经济学
Profit-Maximization
$
R(y) = p(y)y c(y)
y*
y
(y)
2012-10-9
2012-10-9
中级微观经济学
$
Marginal Cost
c(y) = F + ay + by2
F $/output unit y MC(y) = a + 2by
a
y
2012-10-9 中级微观经济学
Profit-Maximization; An Example
At the profit-maximizing output level y*, MR(y*) = MC(y*). So if p(y) = a - by and c(y) = F + ay + by2 then
2012-10-9
中级微观经济学
Why Monopolies?
What
causes monopolies? – a legal fiat; e.g. US Postal Service – a patent; e.g. a new drug – sole ownership of a resource; e.g. a toll highway
中级微观经济学
Profit-Maximization
$
R(y) = p(y)y c(y)
y*
y
(y)
2012-10-9
中级微观经济学
Profit-Maximization
$
R(y) = p(y)y c(y)
y*
At the profit-maximizing output level the slopes of (y) the revenue and total cost curves are equal; MR(y*) = MC(y*).
2012-10-9
中级微观经济学
Why Monopolies?
What
causes monopolies? – a legal fiat; e.g. US Postal Service – a patent; e.g. a new drug – sole ownership of a resource; e.g. a toll highway – formation of a cartel; e.g. OPEC
2012-10-9
中级微观经济学
Monopolistic Pricing & Own-Price Elasticity of Demand
MR( y) d dy
p( y)y p( y) y
dp( y) dy
y dp( y) p( y) 1 . p( y) dy
Own-price elasticity of demand is
p( y) dy y dp( y)