Microeconomics (Christopher T.S. Ragan) (z-lib.org)

Government safety and emissions standards for cars raise the costs of both producing and operating cars. Environmental policies ...

Chapter Outline 10.1 A Single-Price Monopolist 10.2 Cartels and Monopoly power 10.3 Price Discrimination AFTER STUDYING THIS CHA ...

Indirect costs of government intervention are substantial but difficult to measure and are usually dispersed across a large numb ...

Perfect competition is one end of the spectrum of market structures. At the other end is monopoly. When the output of an entire ...

Private firms and special-interest groups often lobby governments for policies in their own interest but at the expense of the p ...

10.1 A Single-Price Monopolist We look first at a monopolist that charges a single price for its product. This firm’s profits, l ...

Government Failure Even in the cases in which the benefits and costs of government intervention can be easily identified and mea ...

A monopolist therefore faces a tradeoff between the price it charges and the quantity it sells. For a monopolist, sales can be i ...

This model of government behaviour never fitted reality, and economists were gradually forced to think more deeply about the mot ...

Figure 10-1 A Monopolist’s Average and Marginal Revenue that the price received for the extra unit sold is not the firm’s margin ...

maximize their salaries and their influence. Voters seek to maximize their own utility. To this end, voters look to the governme ...

Marginal revenue is less than price because the price must be reduced on all units in order to sell an additional unit. Our exam ...

taxpayers vote for a party that advocates lower taxes on the rich and lower transfers to the poor. On the other hand, the charac ...

were calculated in the table. For purposes of illustration, a straight-line demand curve has been chosen. Notice that marginal r ...

consider changing the agricultural policies only when the cost of agricultural support becomes so large that ordinary taxpayers ...

this example the change in total revenue is $10 and the change in quantity is 10 units, so as plotted in the figure at a quantit ...

governments do not have competitors and are not constrained by the “bottom line.” ...

Figure 10-2 Short-Run Profit Maximization for a Monopolist Short-Run Profit Maximization We began this chapter by noting that th ...

How Much Should Government Intervene? Do governments intervene too little, or too much, in response to market failure? This ques ...

The profit-maximizing output is where price is rules for profit maximization require and (AVC not shown in the graph, but it mus ...