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Monopoly: Microeconomics
Monopoly: Microeconomics
10
MONOPOLY
MICROECONOMICS
Roger A. Arnold • Thirteenth Edition
©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or
duplicated, or posted to a publicly accessible website, in whole or in part.
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10-1 The Theory of Monopoly
2
©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©SashkinShutterstock
10-1 The Theory of Monopoly (1 of 3)
3
©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©SashkinShutterstock
10-1 The Theory of Monopoly (2 of 3)
4
©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©SashkinShutterstock
10-1 The Theory of Monopoly (3 of 3)
5
©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©SashkinShutterstock
10-2 Monopoly Pricing and Output Decisions (1 of
5)
6
©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©SashkinShutterstock
EXHIBIT 1
7
©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©SashkinShutterstock
10-2 Monopoly Pricing and Output Decisions (2 of
5)
9
©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©SashkinShutterstock
EXHIBIT 3
10
©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©SashkinShutterstock
EXHIBIT 4
11
©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©SashkinShutterstock
10-2 Monopoly Pricing and Output Decisions (3 of
5)
13
©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©SashkinShutterstock
10-2 Monopoly Pricing and Output Decisions (5 of
5)
14
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10-3 Perfect Competition and Monopoly (1 of 2)
17
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EXHIBIT 6
Monopoly or Nothing?
18
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10-4 The Case Against Monopoly (1 of 3)
20
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10-4 The Case Against Monopoly (2 of 3)
21
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10-4 The Case Against Monopoly (3 of 3)
• 10-4c X-Inefficiency
• X-Inefficiency: The increase in costs, due to the
organizational slack in a monopoly, resulting from the
absence of competitive pressure to push costs down to their
lowest possible level
22
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10-5 Price Discrimination (1 of 5)
23
©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©SashkinShutterstock
10-5 Price Discrimination (2 of 5)
24
©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©SashkinShutterstock
10-5 Price Discrimination (3 of 5)
25
©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©SashkinShutterstock
10-5 Price Discrimination (4 of 5)
26
©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©SashkinShutterstock
EXHIBIT 8
Comparison of a Perfectly Competitive Firm, a Single-Price Monopolist,
and a Perfectly Price-Discriminating Monopolist
27
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10-5 Price Discrimination (5 of 5)