Chapter Outline

10.1 A Single-Price Monopolist

10.2 Cartels and Monopoly power

10.3 Price Discrimination

AFTER STUDYING THIS CHAPTER YOU WILL BE ABLE TO

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 Learning Objectives (LO)

1. explain why marginal revenue is less than price for a profit-

maximizing monopolist.

2. understand how entry barriers can allow monopolists to maintain

positive profits in the long run.

3. describe why firms would form a cartel to restrict industry output

and how this would increase their profits.

4. explain how some firms can increase their profits by charging

different prices to different consumers.