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For more information, please see full course syllabus of AP Microeconomics
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Lecture Comments (14)

1 answer

Last reply by: Professor Jibin Park
Wed Nov 5, 2014 11:38 AM

Post by Rebecca Dai on November 4, 2014

Is it true that when MR is positive, demand is elastic?
Is MR curve always twice as steeper as demand curve (according to the graph)?
Thanks

1 answer

Last reply by: Professor Jibin Park
Wed Nov 5, 2014 11:37 AM

Post by Rebecca Dai on November 4, 2014

In what part (segment) do we break even?

5 answers

Last reply by: Professor Jibin Park
Thu Nov 6, 2014 11:41 PM

Post by Rebecca Dai on November 4, 2014

Why is profit maximized when producing the quantity at which MR=MC? Thanks

1 answer

Last reply by: Professor Jibin Park
Wed Nov 5, 2014 11:36 AM

Post by Rebecca Dai on November 4, 2014

What is the difference between productive efficiency and allocative efficiency? Thanks

1 answer

Last reply by: Professor Jibin Park
Wed Nov 5, 2014 11:35 AM

Post by Rebecca Dai on November 4, 2014

Professor, in which lecture did you talk about marginal revenue? I didn't find it either in the list nor in my notes.

Monopoly

  • Whereas the demand curve of a perfectly competitive firm is perfectly elastic, the demand curve of a monopolist is downward-sloping.
  • In a monopoly, there is a single producer that profit-maximizes.
  • A monopoly is not allocatively efficient as they produce too little and charge too high of a price.
  • If a monopolist can differentiate its customers, it will employ price discrimination in order to increase profitability.
  • In the long-run, a monopoly will make profit.
  • On the left-side of a monopolist’s demand curve, the item is elastic.
  • On the right-side of a monopolist’s demand curve, the item is inelastic.

Monopoly

Lecture Slides are screen-captured images of important points in the lecture. Students can download and print out these lecture slide images to do practice problems as well as take notes while watching the lecture.

  • Intro 0:00
  • Lesson Overview 0:12
  • II. Product Markets 1:13
  • Characteristics of a Monopoly 2:53
    • Control of a Scarce Resource or Input
    • Economies of Scale
    • Technological Superiority
    • Government Monopolies
  • Monopoly and Price Discrimination 5:39
    • Price Discrimination
    • Perfect Price Discrimination
  • Monopoly Making a Profit 12:08
  • Monopoly Incurring a Loss 20:42
  • Monopoly vs. Perfect Competition 23:47
    • P=MC
    • P>MR=MC
    • Monopoly
  • Reading a Monopoly Graph 29:17