effect as "x-inefficiency." If x-inefficiency causes a firm's marginal costs to rise, show that the deadweight loss in Figure 10.10 understates the true deadweight loss caused by a monopoly. If the monopoly were more efficient, its marginal costs would fall—from MC1 to MC2 in the figure. As the figure shows, if a monopoly has higher costs (MC1) because it does not face competition, then the true deadweight loss is increased. The darker shaded area shows the original deadweight loss as it was in Figure
Words: 1291 - Pages: 6
2015 Elena Zee Differentiating Between Market Structures A market structure in economics describes the state of a market with respect to its competition. There exist several different market structures like perfect competition, oligopoly, and monopolies among others. These markets all produce different types of goods or services, like public and private goods as well as common and collective goods. Firms operating in these different market structures utilize the labor market in very different
Words: 1902 - Pages: 8
Professor Owen R. Phillips University of Wyoming Ross Hall 124 COURSE SYLLABUS FOR INTERMEDIATE MICROECONOMICS 4020 Course Description and Prerequisites Economics is broadly defined as a way of thinking about problems of allocation. This course entails the use of intermediate microeconomic theory in the analysis of problems facing decision-makers, not only in business, but also in government and other nonprofit organizations. Intermediate microeconomic theory can be described as
Words: 3518 - Pages: 15
oligopoly(small number of sellers). The opposite of oligopoly is monopoly A monopoly (from Greek monos μόνος (alone or single) + polein πωλεῖν (to sell)) exists when a specific person or enterprise is the only supplier of a particular commodity (this contrasts with a monopsony which relates to a single entity's control of a market to purchase a good or service, and with oligopoly which consists of a few entities dominating an industry).[1] Monopolies are thus characterized by a lack of economic competition
Words: 362 - Pages: 2
BY SHAHZAD MIRZA UKCBC PARK ROYAL LONDON ID: 12878-RB HND BUSINESS MANAGEMENT LECTURER: MR TAIWO OLAJUMOKE BATCH: 11 LEVEL: 4 BY SHAHZAD MIRZA UKCBC PARK ROYAL LONDON ID: 12878-RB HND BUSINESS MANAGEMENT LECTURER: MR TAIWO OLAJUMOKE BATCH: 11
Words: 6611 - Pages: 27
included as part of the financing costs included in total cost. Economic profits: is above normal rate of return. Marginal analysis: total profits is maximized when the difference between MR nd MC is 0. MR=MC=P Chapter 12 Characteristics of monopoly:1. A single seller. 2. Unique products. 3. Blocked entry and exit. 4. Imperfect information. 5. Opportunity for economic profits in long run equilibrium.
Words: 658 - Pages: 3
to define it in terms as an inverse of a monopoly, whereby the buyer can set prices profitably below competitive levels, in what some label a monopsony where there is either only one or a concentrated number of buyers within a competitive selling market (Mellsop and Counsell 2009). However a more holistic approach to buyer power is rather than forcing lower prices, being able to negotiate more favourable terms. However, market power through pure monopsony and according to a review by Chen
Words: 2316 - Pages: 10
NONE | AGRICULTURAL CROPS | MONOPOLISTIC COMPETITION | MANY | DIFFERENTIATED | EASY | MODERATE | MANY LOCAL RETAIL OUTLETS | OLIGOPOLY | FEW | EITHER IDENTICAL OR DIFFERENTIATED | DIFFICULT | MODERATE TO SUBSTANTIAL | AUTOMAKERS | MONOPOLY | ONE | UNIQUE | IMPOSSIBLE | SUBSTANTIAL | LOCAL UTILITY | (“Market Structures”, Economics Online Tutor, July 24, 2012) Perfect competition is used as a model for the other market structures to refer to. This model is never going to be a real
Words: 2234 - Pages: 9
may choose to leave the market if the value of the loss of fringe benefits and greater work demands exceeds the higher rate in pay. That being said, the impact of a binding minimum wage can make both the workers and the employers worse off. Monopsony and Minimum Wages. Em2 Em2 Surplus of workers Surplus of workers 2. Can ‘twisiting’ the pay structure at a firm (paying wages below the productivity of workers early in their tenure, then paying wages above the productivity of workers later
Words: 1040 - Pages: 5
------------------------------------------------- Monopoly From Wikipedia, the free encyclopedia This article is about the economic term. For the board game, see Monopoly (game). For other uses, seeMonopoly (disambiguation). "I Like a Little Competition"—J. P. Morgan by Art Young. Cartoon relating to the answer J. P. Morgan gave when asked whether he disliked competition at the Pujo Committee.[1] A monopoly (from Greek monos μόνος (alone or single) + polein πωλεῖν (to sell)) exists when a
Words: 10774 - Pages: 44
