hen 368 lecture 9 structure, conduct, performance, and market analysis
DESCRIPTION
Market StructureTRANSCRIPT
![Page 1: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/1.jpg)
Health Economics Lecture 9
Structure, Conduct, Performance, and Market
Analysis
![Page 2: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/2.jpg)
Objectives
![Page 3: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/3.jpg)
Objectives
SCP Paradigm
![Page 4: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/4.jpg)
Objectives
SCP ParadigmPerfect Competition
![Page 5: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/5.jpg)
Objectives
SCP ParadigmPerfect Competition
Monopoly
![Page 6: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/6.jpg)
Objectives
SCP ParadigmPerfect Competition
MonopolyBrand Competition
![Page 7: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/7.jpg)
Objectives
SCP ParadigmPerfect Competition
MonopolyBrand Competition
Oligopoly
![Page 8: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/8.jpg)
Structure, Conduct, and Performance
![Page 9: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/9.jpg)
Basic Conditions
![Page 10: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/10.jpg)
Basic ConditionsSupply
![Page 11: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/11.jpg)
Basic ConditionsSupply
Technology
![Page 12: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/12.jpg)
Basic ConditionsSupply
Technology
Unionization
![Page 13: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/13.jpg)
Basic ConditionsSupply
Technology
Unionization
Legal Environment
![Page 14: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/14.jpg)
Basic ConditionsSupply
Technology
Unionization
Legal Environment
Economies of Scale
![Page 15: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/15.jpg)
Basic ConditionsSupply
Technology
Unionization
Legal Environment
Economies of Scale
Demand
![Page 16: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/16.jpg)
Basic ConditionsSupply
Technology
Unionization
Legal Environment
Economies of Scale
Demand
Price Elasticity
![Page 17: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/17.jpg)
Basic ConditionsSupply
Technology
Unionization
Legal Environment
Economies of Scale
Demand
Price Elasticity
Demand Conditions
![Page 18: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/18.jpg)
Market Conditions
![Page 19: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/19.jpg)
Market ConditionsNumber, type, size distribution of sellers and payers
![Page 20: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/20.jpg)
Market ConditionsNumber, type, size distribution of sellers and payers
Type of Product
![Page 21: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/21.jpg)
Market ConditionsNumber, type, size distribution of sellers and payers
Type of Product
Barriers to Entry
![Page 22: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/22.jpg)
Market ConditionsNumber, type, size distribution of sellers and payers
Type of Product
Barriers to Entry
Information Asymmetry
![Page 23: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/23.jpg)
Objectives
![Page 24: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/24.jpg)
ObjectivesProfit Maximization
![Page 25: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/25.jpg)
ObjectivesProfit Maximization
Quantity Maximization
![Page 26: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/26.jpg)
ObjectivesProfit Maximization
Quantity Maximization
Quality Maximization
![Page 27: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/27.jpg)
ObjectivesProfit Maximization
Quantity Maximization
Quality Maximization
Discretionary Spending
![Page 28: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/28.jpg)
ObjectivesProfit Maximization
Quantity Maximization
Quality Maximization
Discretionary Spending
Other
![Page 29: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/29.jpg)
Public Policy
![Page 30: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/30.jpg)
Public PolicyTaxes and Subsidies
![Page 31: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/31.jpg)
Public PolicyTaxes and Subsidies
Antitrust Regulations
![Page 32: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/32.jpg)
Public PolicyTaxes and Subsidies
Antitrust Regulations
Price Regulations
![Page 33: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/33.jpg)
Public PolicyTaxes and Subsidies
Antitrust Regulations
Price Regulations
Certificate of Need Laws
![Page 34: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/34.jpg)
Public PolicyTaxes and Subsidies
Antitrust Regulations
Price Regulations
Certificate of Need Laws
Peer Review Organizations
![Page 35: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/35.jpg)
Conduct
![Page 36: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/36.jpg)
ConductPrice Behavior
![Page 37: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/37.jpg)
ConductPrice Behavior
Product Promotion
![Page 38: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/38.jpg)
ConductPrice Behavior
Product Promotion
Research and Development
![Page 39: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/39.jpg)
Performance
![Page 40: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/40.jpg)
PerformanceProduction and Allocation Efficiency
![Page 41: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/41.jpg)
PerformanceProduction and Allocation Efficiency
Equity
![Page 42: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/42.jpg)
PerformanceProduction and Allocation Efficiency
Equity
Technological Progress
![Page 43: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/43.jpg)
Market Structures
![Page 44: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/44.jpg)
Market StructuresPerfect Competition
![Page 45: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/45.jpg)
Market StructuresPerfect Competition
Monopoly
![Page 46: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/46.jpg)
Market StructuresPerfect Competition
Monopoly
Monopolistic Competition
![Page 47: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/47.jpg)
Market StructuresPerfect Competition
Monopoly
Monopolistic Competition
Oligopoly
![Page 48: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/48.jpg)
Market Structure and Power
0% 100%
![Page 49: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/49.jpg)
Market Structure and Power
0% 100%
![Page 50: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/50.jpg)
Number of Firms
Type of Product
Ease of Entry
Demand
Examples
Market Structure and Power
0% 100%
![Page 51: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/51.jpg)
Number of Firms
Type of Product
Ease of Entry
Demand
Examples
Perfect Competition
Many
Identical
Easy
D = MR
Commodities Rice
Apples
Market Structure and Power
0% 100%
![Page 52: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/52.jpg)
Number of Firms
Type of Product
Ease of Entry
Demand
Examples
Perfect Competition
Many
Identical
Easy
D = MR
Commodities Rice
Apples
Monopolistic Competition
Many
Different
Easy
Dynamic
Cell Phones
Market Structure and Power
0% 100%
![Page 53: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/53.jpg)
Number of Firms
Type of Product
Ease of Entry
Demand
Examples
Perfect Competition
Many
Identical
Easy
D = MR
Commodities Rice
Apples
Monopolistic Competition
Many
Different
Easy
Dynamic
Cell Phones
Oligopoly
Few
Similar
Substantial
Game Theory
Market Structure and Power
0% 100%
![Page 54: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/54.jpg)
Number of Firms
Type of Product
Ease of Entry
Demand
Examples
Perfect Competition
Many
Identical
Easy
D = MR
Commodities Rice
Apples
Monopolistic Competition
Many
Different
Easy
Dynamic
Cell Phones
Oligopoly
Few
Similar
Substantial
Game Theory
Monopoly
One
Unique
Blocked
D > MR
Utilities Government
Market Structure and Power
0% 100%
![Page 55: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/55.jpg)
Perfect Competition
![Page 56: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/56.jpg)
Perfect CompetitionMany Sellers
![Page 57: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/57.jpg)
Perfect CompetitionMany SellersMany Buyers
![Page 58: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/58.jpg)
Perfect CompetitionMany SellersMany BuyersNo barriers
![Page 59: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/59.jpg)
Perfect CompetitionMany SellersMany BuyersNo barriers
Same product
![Page 60: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/60.jpg)
Perfect CompetitionMany SellersMany BuyersNo barriers
Same productTiny share
![Page 61: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/61.jpg)
Q
$
Perfect Competition
![Page 62: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/62.jpg)
Q
$
Perfect Competition
Demand =
MRPrice
![Page 63: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/63.jpg)
Q
$
Perfect Competition
Demand =
MRPrice
Marginal Costs
![Page 64: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/64.jpg)
Q
$
Perfect Competition
Demand =
MRPrice
Marginal Costs
![Page 65: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/65.jpg)
Q
$
Perfect Competition
Demand =
MRPrice
Marginal Costs
QProductively
Efficient
![Page 66: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/66.jpg)
Q
$
Perfect Competition
Demand =
MRPrice
Marginal Costs
QProductively
Efficient
Average Costs
![Page 67: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/67.jpg)
Q
$
Perfect Competition
Demand =
MRPrice
Marginal Costs
QProductively
Efficient
Average Costs
![Page 68: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/68.jpg)
Q
$
Perfect Competition
Demand =
MRPrice
Marginal Costs
QProductively
Efficient
Average Costs
![Page 69: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/69.jpg)
Q
$
Perfect Competition
Demand =
MRPrice
Marginal Costs
QProductively
Efficient
Average Costs
Profit
![Page 70: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/70.jpg)
Monopoly
![Page 71: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/71.jpg)
Monopoly
Only One Seller No Close Substitutes
Barrier to Entry
![Page 72: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/72.jpg)
Barriers to Entry
![Page 73: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/73.jpg)
Barriers to Entry
Government Protection Key Resource
Network Externalities Economies of Scale
![Page 74: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/74.jpg)
Patents !
!
Copyrights
![Page 75: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/75.jpg)
Patents !
!
Copyrights
20 Years !
!
Lifetime plus 70 Years
![Page 76: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/76.jpg)
Franchise
![Page 77: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/77.jpg)
Franchise
Exclusive Legal Provider
![Page 78: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/78.jpg)
New Drugs
![Page 79: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/79.jpg)
New Drugs
10 Years of Testing before Approval
!
10 Years of Monopoly
![Page 80: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/80.jpg)
Network Externalities
![Page 81: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/81.jpg)
Network Externalities
The more who use it !
The more valuable it becomes
![Page 82: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/82.jpg)
Natural Monopoly
![Page 83: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/83.jpg)
Natural Monopoly
One firm can supply entire market at a lower average cost than two or
more firms
![Page 84: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/84.jpg)
Natural Monopoly
![Page 85: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/85.jpg)
Natural Monopoly
The more I make the lower my costs
!
Large Fixed Costs
![Page 86: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/86.jpg)
Is competition always good?
![Page 87: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/87.jpg)
Is competition always good?
Sometimes it can lead to higher prices
![Page 88: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/88.jpg)
Monopoly Output and Price
![Page 89: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/89.jpg)
Monopoly Output and Price
Lower Price:
Good: Sell More
Bad: Less Revenue Per Unit
![Page 90: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/90.jpg)
Perfect Competition
![Page 91: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/91.jpg)
Perfect Competition$
Quantity
![Page 92: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/92.jpg)
P
Perfect Competition$
Quantity
Demand=MR
![Page 93: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/93.jpg)
P
Perfect Competition
Marginal Cost MC
$
Quantity
Demand=MR
![Page 94: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/94.jpg)
P
Perfect Competition
Marginal Cost MC
$
Quantity
Demand=MR
![Page 95: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/95.jpg)
Q
P
Perfect Competition
Marginal Cost MC
$
Quantity
Demand=MR
![Page 96: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/96.jpg)
Q
P
Perfect Competition
Marginal Cost MC
$
Quantity
Demand=MR
Total Revenue
![Page 97: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/97.jpg)
Q
P
Perfect Competition
Marginal Cost MC Average Cost
ATC
$
Quantity
Demand=MR
Total Revenue
![Page 98: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/98.jpg)
Q
P
Perfect Competition
Marginal Cost MC Average Cost
ATC
$
Quantity
Demand=MR
Total Revenue
![Page 99: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/99.jpg)
Q
P
Perfect Competition
Marginal Cost MC Average Cost
ATC
Total Cost
$
Quantity
Demand=MR
![Page 100: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/100.jpg)
Q
P
Perfect Competition
Marginal Cost MC Average Cost
ATC
Total Cost
$
Quantity
ProfitDemand=MR
![Page 101: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/101.jpg)
Perfect Competition
![Page 102: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/102.jpg)
Demand
Perfect Competition
![Page 103: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/103.jpg)
Demand
MR
Perfect Competition
![Page 104: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/104.jpg)
Demand MR=
Perfect Competition
![Page 105: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/105.jpg)
Demand MR
Monopoly
![Page 106: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/106.jpg)
Demand
MR
Monopoly
![Page 107: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/107.jpg)
Demand
MR
Monopoly
![Page 108: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/108.jpg)
Perfect Competition Monopoly
Q D TR MR D TR MR
1
2
3
4
5
Monopoly: To get more Quantity must lower price
![Page 109: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/109.jpg)
Perfect Competition Monopoly
Q D TR MR D TR MR
1
2
3
4
5
Monopoly: To get more Quantity must lower price
![Page 110: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/110.jpg)
Perfect Competition Monopoly
Q D TR MR D TR MR
1
2
3
4
5
Monopoly: To get more Quantity must lower price
$3
$3
$3
$3
$3
![Page 111: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/111.jpg)
Perfect Competition Monopoly
Q D TR MR D TR MR
1
2
3
4
5
Monopoly: To get more Quantity must lower price
$3
$3
$3
$3
$3
$3
$6
$9
$12
$15
![Page 112: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/112.jpg)
Perfect Competition Monopoly
Q D TR MR D TR MR
1
2
3
4
5
Monopoly: To get more Quantity must lower price
$3
$3
$3
$3
$3
$3
$6
$9
$12
$15
$3
$3
$3
$3
$3
![Page 113: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/113.jpg)
Perfect Competition Monopoly
Q D TR MR D TR MR
1
2
3
4
5
Monopoly: To get more Quantity must lower price
$3
$3
$3
$3
$3
$3
$6
$9
$12
$15
$3
$3
$3
$3
$3
$5
$4
$3
$2
$1
![Page 114: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/114.jpg)
Perfect Competition Monopoly
Q D TR MR D TR MR
1
2
3
4
5
Monopoly: To get more Quantity must lower price
$3
$3
$3
$3
$3
$3
$6
$9
$12
$15
$3
$3
$3
$3
$3
$5
$4
$3
$2
$1
$5
$8
$9
$8
$5
![Page 115: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/115.jpg)
Perfect Competition Monopoly
Q D TR MR D TR MR
1
2
3
4
5
Monopoly: To get more Quantity must lower price
$3
$3
$3
$3
$3
$3
$6
$9
$12
$15
$3
$3
$3
$3
$3
$5
$4
$3
$2
$1
$5
$8
$9
$8
$5
$5
$3
$1
-$1
-$3
![Page 116: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/116.jpg)
Demand
Perfect Competition
![Page 117: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/117.jpg)
Demand MR=
Perfect Competition
![Page 118: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/118.jpg)
Demand
MR
Monopoly
![Page 119: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/119.jpg)
Monopoly
Price
1 3
$5
$3
$4
$2
$1
$02 4 5
Price Qty TR MR
Qty
Lose Gain
Demand
![Page 120: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/120.jpg)
Monopoly
Price
1 3
$5
$3
$4
$2
$1
$02 4 5
Price Qty TR MR
$5 1
Qty
Lose Gain
Demand
![Page 121: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/121.jpg)
Monopoly
Price
1 3
$5
$3
$4
$2
$1
$02 4 5
Price Qty TR MR
$5 1
Qty
$5
Lose Gain
Demand
![Page 122: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/122.jpg)
Monopoly
Price
1 3
$5
$3
$4
$2
$1
$02 4 5
Price Qty TR MR
$5 1
Qty
$5 $5
Lose Gain
Demand
![Page 123: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/123.jpg)
Monopoly
Price
1 3
$5
$3
$4
$2
$1
$02 4 5
Price Qty TR MR
$5
$4
1
2
Qty
$5 $5
Lose Gain
Demand
![Page 124: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/124.jpg)
Monopoly
Price
1 3
$5
$3
$4
$2
$1
$02 4 5
Price Qty TR MR
$5
$4
1
2
Qty
$5
$8
$5
Lose Gain
Demand
![Page 125: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/125.jpg)
Monopoly
Price
1 3
$5
$3
$4
$2
$1
$02 4 5
Price Qty TR MR
$5
$4
1
2
Qty
$5
$8
$5
$3
Lose Gain
Demand
![Page 126: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/126.jpg)
Monopoly
Price
1 3
$5
$3
$4
$2
$1
$02 4 5
Price Qty TR MR
$5
$4
1
2
Qty
$5
$8
$5
$3
Lose Gain
Demand
![Page 127: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/127.jpg)
Monopoly
Price
1 3
$5
$3
$4
$2
$1
$02 4 5
Price Qty TR MR
$5
$4
1
2
Qty
$5
$8
$5
$3
Lose Gain
Demand
![Page 128: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/128.jpg)
Monopoly
Price
1 3
$5
$3
$4
$2
$1
$02 4 5
Price Qty TR MR
$5
$4
1
2
Qty
$5
$8
$5
$3
Lose
Lose
-$1
Gain
Demand
![Page 129: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/129.jpg)
Monopoly
Price
1 3
$5
$3
$4
$2
$1
$02 4 5
Price Qty TR MR
$5
$4
1
2
Qty
$5
$8
$5
$3
LoseG
ain
Lose
-$1
Gain
$4
Demand
![Page 130: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/130.jpg)
Monopoly
Price
1 3
$5
$3
$4
$2
$1
$02 4 5
Price Qty TR MR
$5
$4
1
2
Qty
$5
$8
$5
$3
LoseG
ain
Lose
-$1
Gain
$4
Demand
![Page 131: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/131.jpg)
Monopoly
Price
1 3
$5
$3
$4
$2
$1
$02 4 5
Price Qty TR MR
$5
$4
1
2
Qty
$5
$8
$5
$3
LoseG
ain
Lose
-$1
Gain
$4
Demand
![Page 132: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/132.jpg)
Monopoly
Price
1 3
$5
$3
$4
$2
$1
$02 4 5
Price Qty TR MR
$5
$4
1
2
Qty
$5
$8
$5
$3
Lose
-$1
Gain
$4
Demand
![Page 133: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/133.jpg)
Monopoly
Price
1 3
$5
$3
$4
$2
$1
$02 4 5
Price Qty TR MR
$5
$3
$4
1
3
2
Qty
$5
$8
$5
$3
Lose
-$1
Gain
$4
Demand
![Page 134: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/134.jpg)
Monopoly
Price
1 3
$5
$3
$4
$2
$1
$02 4 5
Price Qty TR MR
$5
$3
$4
1
3
2
Qty
$5
$8
$9
$5
$3
Lose
-$1
Gain
$4
Demand
![Page 135: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/135.jpg)
Monopoly
Price
1 3
$5
$3
$4
$2
$1
$02 4 5
Price Qty TR MR
$5
$3
$4
1
3
2
Qty
$5
$8
$9
$5
$3
$1
Lose
-$1
Gain
$4
Demand
![Page 136: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/136.jpg)
Monopoly
Price
1 3
$5
$3
$4
$2
$1
$02 4 5
Price Qty TR MR
$5
$3
$4
1
3
2
Qty
$5
$8
$9
$5
$3
$1
Lose
-$2
-$1
Gain
$4
Lose
Demand
![Page 137: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/137.jpg)
Monopoly
Price
1 3
$5
$3
$4
$2
$1
$02 4 5
Price Qty TR MR
$5
$3
$4
1
3
2
Qty
$5
$8
$9
$5
$3
$1
Lose
-$2
-$1
Gain
$3
$4
LoseG
ain
Demand
![Page 138: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/138.jpg)
Monopoly
Price
1 3
$5
$3
$4
$2
$1
$02 4 5
Price Qty TR MR
$5
$3
$4
1
3
2
Qty
$5
$8
$9
$5
$3
$1
Lose
-$2
-$1
Gain
$3
$4
Demand
![Page 139: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/139.jpg)
Monopoly
Price
1 3
$5
$3
$4
$2
$1
$02 4 5
Price Qty TR MR
$5
$3
$4
$2
1
3
2
4
Qty
$5
$8
$9
$5
$3
$1
Lose
-$2
-$1
Gain
$3
$4
Demand
![Page 140: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/140.jpg)
Monopoly
Price
1 3
$5
$3
$4
$2
$1
$02 4 5
Price Qty TR MR
$5
$3
$4
$2
1
3
2
4
Qty
$5
$8
$9
$8
$5
$3
$1
Lose
-$2
-$1
Gain
$3
$4
Demand
![Page 141: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/141.jpg)
Monopoly
Price
1 3
$5
$3
$4
$2
$1
$02 4 5
Price Qty TR MR
$5
$3
$4
$2
1
3
2
4
Qty
$5
$8
$9
$8
$5
$3
$1
-$1
Lose
-$2
-$1
Gain
$3
$4
Demand
![Page 142: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/142.jpg)
Monopoly
Price
1 3
$5
$3
$4
$2
$1
$02 4 5
Price Qty TR MR
$5
$3
$4
$2
1
3
2
4
Qty
$5
$8
$9
$8
$5
$3
$1
-$1
Lose
-$2
-$1
-$3
Gain
$3
$4
Lose
Demand
![Page 143: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/143.jpg)
Monopoly
Price
1 3
$5
$3
$4
$2
$1
$02 4 5
Price Qty TR MR
$5
$3
$4
$2
1
3
2
4
Qty
$5
$8
$9
$8
$5
$3
$1
-$1
Lose
-$2
-$1
-$3
Gain
$3
$4
$2
LoseG
ain Demand
![Page 144: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/144.jpg)
Monopoly
Price
1 3
$5
$3
$4
$2
$1
$02 4 5
Price Qty TR MR
$5
$3
$4
$2
1
3
2
4
Qty
$5
$8
$9
$8
$5
$3
$1
-$1
Lose
-$2
-$1
-$3
Gain
$3
$4
$2
Demand
![Page 145: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/145.jpg)
Monopoly
Price
1 3
$5
$3
$4
$2
$1
$02 4 5
Price Qty TR MR
$5
$3
$4
$2
$1
1
3
2
4
5
Qty
$5
$8
$9
$8
$5
$3
$1
-$1
Lose
-$2
-$1
-$3
Gain
$3
$4
$2
Demand
![Page 146: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/146.jpg)
Monopoly
Price
1 3
$5
$3
$4
$2
$1
$02 4 5
Price Qty TR MR
$5
$3
$4
$2
$1
1
3
2
4
5
Qty
$5
$8
$9
$8
$5
$5
$3
$1
-$1
Lose
-$2
-$1
-$3
Gain
$3
$4
$2
Demand
![Page 147: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/147.jpg)
Monopoly
Price
1 3
$5
$3
$4
$2
$1
$02 4 5
Price Qty TR MR
$5
$3
$4
$2
$1
1
3
2
4
5
Qty
$5
$8
$9
$8
$5
$5
$3
$1
-$1
-$3
Lose
-$2
-$1
-$3
Gain
$3
$4
$2
Demand
![Page 148: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/148.jpg)
Monopoly
Price
1 3
$5
$3
$4
$2
$1
$02 4 5
Price Qty TR MR
$5
$3
$4
$2
$1
1
3
2
4
5
Qty
$5
$8
$9
$8
$5
$5
$3
$1
-$1
-$3
Lose
-$2
-$1
-$3
-$4
Gain
$3
$4
$2
Lose Demand
![Page 149: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/149.jpg)
Monopoly
Price
1 3
$5
$3
$4
$2
$1
$02 4 5
Price Qty TR MR
$5
$3
$4
$2
$1
1
3
2
4
5
Qty
$5
$8
$9
$8
$5
$5
$3
$1
-$1
-$3
Lose
-$2
-$1
-$3
-$4
Gain
$3
$4
$2
$1
LoseG
ain Demand
![Page 150: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/150.jpg)
Monopoly
Price
1 3
$5
$3
$4
$2
$1
$02 4 5
Price Qty TR MR
$5
$3
$4
$2
$1
1
3
2
4
5
Qty
$5
$8
$9
$8
$5
$5
$3
$1
-$1
-$3
Lose
-$2
-$1
-$3
-$4
Gain
$3
$4
$2
$1
Demand
![Page 151: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/151.jpg)
Monopoly
Price
1 3
$5
$3
$4
$2
$1
$02 4 5
Price Qty TR MR
$5
$3
$4
$2
$1
1
3
2
4
5
Qty
$5
$8
$9
$8
$5
$5
$3
$1
-$1
-$3
Lose
-$2
-$1
-$3
-$4
Gain
$3
$4
$2
$1
Demand
![Page 152: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/152.jpg)
Monopoly
Price
1 3
$5
$3
$4
$2
$1
$02 4 5
Price Qty TR MR
$5
$3
$4
$2
$1
1
3
2
4
5
Qty
$5
$8
$9
$8
$5
$5
$3
$1
-$1
-$3
Lose
-$2
-$1
-$3
-$4
Gain
$3
$4
$2
$1
Demand
![Page 153: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/153.jpg)
Monopoly
Price
1 3
$5
$3
$4
$2
$1
$02 4 5
Price Qty TR MR
$5
$3
$4
$2
$1
1
3
2
4
5
Qty
$5
$8
$9
$8
$5
$5
$3
$1
-$1
-$3
Lose
-$2
-$1
-$3
-$4
Gain
$3
$4
$2
$1
Demand
![Page 154: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/154.jpg)
Monopoly
Price
1 3
$5
$3
$4
$2
$1
$02 4 5
Price Qty TR MR
$5
$3
$4
$2
$1
1
3
2
4
5
Qty
$5
$8
$9
$8
$5
$5
$3
$1
-$1
-$3
Lose
-$2
-$1
-$3
-$4
Gain
$3
$4
$2
$1
Demand
![Page 155: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/155.jpg)
Monopoly
Price
1 3
$5
$3
$4
$2
$1
$02 4 5
Price Qty TR MR
$5
$3
$4
$2
$1
1
3
2
4
5
Qty
$5
$8
$9
$8
$5
$5
$3
$1
-$1
-$3
Lose
-$2
-$1
-$3
-$4
Gain
$3
$4
$2
$1
Demand
Marginal Revenue MR
![Page 156: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/156.jpg)
Monopoly$
Q
![Page 157: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/157.jpg)
Monopoly$
Q
Demand
![Page 158: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/158.jpg)
Marginal Revenue MR
Monopoly$
Q
Demand
![Page 159: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/159.jpg)
Marginal Cost MC
Marginal Revenue MR
Monopoly$
Q
Demand
![Page 160: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/160.jpg)
Marginal Cost MC
Marginal Revenue MR
Monopoly$
Q
Demand
1. MR=MC?
![Page 161: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/161.jpg)
Marginal Cost MC
Marginal Revenue MR
Monopoly$
Q
Demand
1. MR=MC?
![Page 162: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/162.jpg)
Marginal Cost MC
Q
Marginal Revenue MR
Monopoly$
Q
Demand
1. MR=MC?
![Page 163: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/163.jpg)
Marginal Cost MC
Q
P
Marginal Revenue MR
Monopoly$
Q
Demand
1. MR=MC?
![Page 164: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/164.jpg)
Marginal Cost MC
Q
P
Marginal Revenue MR
Monopoly$
Q
Demand
1. MR=MC?2. TR= P x Q
![Page 165: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/165.jpg)
Marginal Cost MC
Q
P
Marginal Revenue MR
Monopoly
Average Cost ATC
$
Q
Demand
1. MR=MC?2. TR= P x Q
![Page 166: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/166.jpg)
Marginal Cost MC
Q
P
Marginal Revenue MR
Monopoly
Average Cost ATC
$
Q
Demand
1. MR=MC?2. TR= P x Q3. TC=ATC x Q
![Page 167: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/167.jpg)
Marginal Cost MC
Q
P
Marginal Revenue MR
Monopoly
Average Cost ATC
$
Q
Demand
1. MR=MC?2. TR= P x Q3. TC=ATC x Q
![Page 168: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/168.jpg)
Marginal Cost MC
Q
P
Marginal Revenue MR
Monopoly
Average Cost ATC
$
Q
Demand
1. MR=MC?2. TR= P x Q3. TC=ATC x Q
![Page 169: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/169.jpg)
Marginal Cost MC
Q
P
Marginal Revenue MR
Monopoly
Average Cost ATC
$
Q
Demand
1. MR=MC?2. TR= P x Q3. TC=ATC x Q
![Page 170: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/170.jpg)
Marginal Cost MC
Q
P
Marginal Revenue MR
Monopoly
Average Cost ATC
Cost
$
Q
Demand
1. MR=MC?2. TR= P x Q3. TC=ATC x Q
![Page 171: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/171.jpg)
Marginal Cost MC
Q
P
Marginal Revenue MR
Monopoly
Average Cost ATC
Cost
$
Q
Demand
1. MR=MC?2. TR= P x Q3. TC=ATC x Q4. Profit =TR-TC or (P-ATC) x Q
![Page 172: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/172.jpg)
Marginal Cost MC
Q
P
Marginal Revenue MR
Monopoly
Average Cost ATC
Cost
$
Q
Demand
1. MR=MC?2. TR= P x Q3. TC=ATC x Q4. Profit =TR-TC or (P-ATC) x Q
![Page 173: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/173.jpg)
Marginal Cost MC
Q
P
Marginal Revenue MR
Monopoly
Average Cost ATC
Cost
$
Q
Profit
Demand
1. MR=MC?2. TR= P x Q3. TC=ATC x Q4. Profit =TR-TC or (P-ATC) x Q
![Page 174: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/174.jpg)
Marginal Cost MC
Q
P
Marginal Revenue MR
Monopoly
Average Cost ATC
Cost
$
Q
Profit
Demand
1. MR=MC?2. TR= P x Q3. TC=ATC x Q4. Profit =TR-TC or (P-ATC) x Q
![Page 175: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/175.jpg)
Marginal Cost MC
Q
P
Marginal Revenue MR
Monopoly
Average Cost ATC
Cost
$
Q
Profit
Demand
Consumer Surplus
1. MR=MC?2. TR= P x Q3. TC=ATC x Q4. Profit =TR-TC or (P-ATC) x Q
![Page 176: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/176.jpg)
Marginal Cost MC
Q
P
Marginal Revenue MR
Monopoly
Average Cost ATC
Cost
$
Q
Profit
Demand
Consumer Surplus
1. MR=MC?2. TR= P x Q3. TC=ATC x Q4. Profit =TR-TC or (P-ATC) x Q
![Page 177: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/177.jpg)
Marginal Cost MC
Q
P
Marginal Revenue MR
Monopoly
Average Cost ATC
Cost
$
Q
Profit
Demand
Deadweight Loss
Consumer Surplus
1. MR=MC?2. TR= P x Q3. TC=ATC x Q4. Profit =TR-TC or (P-ATC) x Q
![Page 178: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/178.jpg)
Antitrust Laws
![Page 179: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/179.jpg)
Antitrust Laws
Collusion
Felony
![Page 180: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/180.jpg)
Monopolistic Competition
![Page 181: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/181.jpg)
Monopolistic Competition
Brands competing with each other.
Differentiating products
Pay more for more choices
![Page 182: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/182.jpg)
Q
$
D
MR
Monopoly
![Page 183: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/183.jpg)
Q
$
D MR=Perfect Competition
![Page 184: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/184.jpg)
Q
$
Monopolistic Competition
DMR
Short Run
![Page 185: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/185.jpg)
Q
$
Monopolistic Competition
DMR
Short Run
Steep Demand
![Page 186: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/186.jpg)
Q
$
Monopolistic Competition
DMR
Short Run
Long Run
Steep Demand
![Page 187: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/187.jpg)
Q
$
Monopolistic Competition
DMR
Short Run
Long Run
Steep Demand
![Page 188: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/188.jpg)
Q
$
Monopolistic Competition
DMR
Short Run
Long Run
Steep Demand
Demand Flattens
![Page 189: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/189.jpg)
Q
$Short Run
DMR
Monopolistic Competition
![Page 190: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/190.jpg)
Q
$Short Run
DMR
MC
Monopolistic Competition
![Page 191: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/191.jpg)
Q
$Short Run
DMR
MC
Monopolistic Competition
![Page 192: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/192.jpg)
Q
$Short Run
DMR
MC
QS
Monopolistic Competition
![Page 193: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/193.jpg)
Q
$Short Run
DMR
MC
QS
Monopolistic Competition
![Page 194: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/194.jpg)
Q
$Short Run
DMR
MC
QS
PS
Monopolistic Competition
![Page 195: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/195.jpg)
Q
$Short Run
DMR
MC
ATC
QS
PS
Monopolistic Competition
![Page 196: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/196.jpg)
Q
$Short Run
DMR
MC
ATC
QS
PS
Monopolistic Competition
![Page 197: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/197.jpg)
Q
$Short Run
DMR
MC
ATC
QS
PS
Monopolistic Competition
![Page 198: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/198.jpg)
Q
$Short Run
DMR
MC
ATC
QS
PS
Monopolistic Competition
![Page 199: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/199.jpg)
Q
$Short Run
DMR
MC
ATCProfit
QS
PS
Monopolistic Competition
![Page 200: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/200.jpg)
Q
$Short Run
DMR
MC
ATCProfit
High Price Large Quantity
QS
PS
Monopolistic Competition
![Page 201: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/201.jpg)
Q
$Short Run
Long Run
DMR
MC
ATCProfit
High Price Large Quantity
QS
PS
Monopolistic Competition
![Page 202: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/202.jpg)
Q
$Short Run
Long Run
DMR
MC
ATC
High Price Large Quantity
QS
PSDemand Flattens
Monopolistic Competition
![Page 203: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/203.jpg)
Q
$Short Run
Long Run
DMR
MC
ATC
High Price Large Quantity
QS
PSDemand Flattens
Monopolistic Competition
![Page 204: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/204.jpg)
Q
$Short Run
Long Run
DMR
MC
ATC
High Price Large Quantity
QS
PSDemand Flattens
Monopolistic Competition
![Page 205: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/205.jpg)
Q
$Short Run
Long Run
DMR
MC
ATC
High Price Large Quantity
QSQ
PSDemand Flattens
Monopolistic Competition
![Page 206: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/206.jpg)
Q
$Short Run
Long Run
DMR
MC
ATC
High Price Large Quantity
QSQ
PSDemand Flattens
Monopolistic Competition
![Page 207: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/207.jpg)
Q
$Short Run
Long Run
DMR
MC
ATC
High Price Large Quantity
QSQ
PPSDemand Flattens
Monopolistic Competition
![Page 208: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/208.jpg)
Q
$Short Run
Long Run
DMR
MC
ATC
High Price Large Quantity
Lower Price Lower Quantity
QSQ
PPSDemand Flattens
Monopolistic Competition
![Page 209: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/209.jpg)
Q
$Short Run
Long Run
DMR
MC
ATC
High Price Large Quantity
Lower Price Lower Quantity
QSQ
P
PS
L
L
Demand Flattens
Monopolistic Competition
![Page 210: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/210.jpg)
Q
$Short Run
Long Run
DMR
MC
ATC
High Price Large Quantity
Lower Price Lower Quantity
QSQ
P
PS
L
L
Demand Flattens
Monopolistic Competition
![Page 211: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/211.jpg)
Q
$Short Run
Long Run
DMR
MC
ATC
High Price Large Quantity
Lower Price Lower Quantity
QSQ
P
PS
L
L
Demand Flattens
Monopolistic Competition
![Page 212: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/212.jpg)
Q
$Short Run
Long Run
DMR
MC
ATC
High Price Large Quantity
Lower Price Lower Quantity
QSQ
P
PS
L
L
Demand Flattens
Monopolistic Competition
![Page 213: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/213.jpg)
Q
$Short Run
Long Run
DMR
MC
ATC
High Price Large Quantity
Lower Price Lower Quantity
QSQ
P
PS
L
L
Demand Flattens
Profit
Monopolistic Competition
![Page 214: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/214.jpg)
Q
$Short Run
Long Run
DMR
MC
ATC
Profits disappear in the long run
due to competition
High Price Large Quantity
Lower Price Lower Quantity
QSQ
P
PS
L
L
Demand Flattens
Profit
Monopolistic Competition
![Page 215: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/215.jpg)
D
MR
MC
Profits
![Page 216: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/216.jpg)
D
MR
MC
Competition flattens the Demand Curve
and squeezes profits.
![Page 217: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/217.jpg)
Q
$
Market Competition
![Page 218: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/218.jpg)
Q
$
Market Competition
Short Run Demand
Short Run Marginal Revenue
![Page 219: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/219.jpg)
Q
$
Market Competition
Short Run Demand
Short Run Marginal Revenue
Marginal Costs
![Page 220: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/220.jpg)
Q
$
Market Competition
Short Run Demand
Short Run Marginal Revenue
Marginal Costs
![Page 221: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/221.jpg)
Q
$
Market Competition
Short Run Demand
Short Run Marginal Revenue
Marginal Costs
![Page 222: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/222.jpg)
Q
$
Market Competition
Short Run Demand
Short Run Marginal Revenue
Marginal Costs
![Page 223: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/223.jpg)
Q
$
Market Competition
Short Run Demand
Short Run Marginal Revenue
Marginal Costs
QSR
PSR
![Page 224: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/224.jpg)
Q
$
Market Competition
Short Run Demand
Short Run Marginal Revenue
Marginal Costs
Average Total Costs
QSR
PSR
![Page 225: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/225.jpg)
Q
$
Market Competition
Short Run Demand
Short Run Marginal Revenue
Marginal Costs
Average Total Costs
QSR
PSR
![Page 226: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/226.jpg)
Q
$
Market Competition
Short Run Demand
Short Run Marginal Revenue
Marginal Costs
Average Total Costs
QSR
PSR
![Page 227: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/227.jpg)
Q
$
Market Competition
Short Run Demand
Short Run Marginal Revenue
Marginal Costs
Average Total Costs
QSR
PSR
![Page 228: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/228.jpg)
Q
$
Market Competition
Short Run Demand
Short Run Marginal Revenue
Marginal Costs
Average Total Costs
QSR
PSR
![Page 229: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/229.jpg)
Q
$
Market Competition
Short Run Demand
Short Run Marginal Revenue
Long Run Demand
Long Run Marginal Revenue
Marginal Costs
Average Total Costs
QSR
PSR
![Page 230: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/230.jpg)
Q
$
Market Competition
Short Run Demand
Short Run Marginal Revenue
Long Run Demand
Long Run Marginal Revenue
Marginal Costs
Average Total Costs
QSR
PSR
![Page 231: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/231.jpg)
Q
$
Market Competition
Short Run Demand
Short Run Marginal Revenue
Long Run Demand
Long Run Marginal Revenue
Marginal Costs
Average Total Costs
QSR
PSR
![Page 232: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/232.jpg)
Q
$
Market Competition
Short Run Demand
Short Run Marginal Revenue
Long Run Demand
Long Run Marginal Revenue
Marginal Costs
Average Total Costs
QSR
PSR
![Page 233: Hen 368 lecture 9 structure, conduct, performance, and market analysis](https://reader036.vdocuments.site/reader036/viewer/2022062710/559539541a28abc23c8b47af/html5/thumbnails/233.jpg)
Q
$
Market Competition
Short Run Demand
Short Run Marginal Revenue
Long Run Demand
Long Run Marginal Revenue
Marginal Costs
Average Total Costs
QSR
PSR
QLR
PLR