讲义10chapter.ppt121

Lecture 9
Market Power:
Monopoly and Monopsony
Topics to be Discussed
Monopoly
Monopoly Power
Sources of Monopoly Power
The Social Costs of Monopoly Power
Topics to be Discussed
Monopsony
Monopsony Power
Limiting Market Power: The Antitrust Laws
Perfect Competition
Review of Perfect Competition
P = LMC = LRAC
Normal profits or zero economic profits in the long run
Large number of buyers and sellers
Homogenous product
Perfect information
Firm is a price taker
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