【正文】 Marginal Revenue Quantity (Q) Price (P) Total Revenue (TR=PxQ) Average Revenue (AR=TR/Q) Marginal Revenue (MR= ) 0 $ $ 1 $ $ $ $ 2 $ $ $ $ 3 $ $ $ $ 4 $ $ $ $ 5 $ $ $ $ 6 $ $ $ $ 7 $ $ $ $ 8 $ $ $ $ Q TR D D / Harcourt, Inc. items and derived items copyright 169。 2022 by Harcourt, Inc. Quantity of Output Demand (a) A Competitive Firm’s Demand Curve (b) A Monopolist’s Demand Curve 0 Price 0 Quantity of Output Price Demand Demand Curves for Competitive and Monopoly Firms... Harcourt, Inc. items and derived items copyright 169。 2022 by Harcourt, Inc. Monopoly versus Competition Monopoly ?Is the sole producer ?Has a downwardsloping demand curve ?Is a price maker ?Reduces price to increase sales Harcourt, Inc. items and derived items copyright 169。 2022 by Harcourt, Inc. Natural Monopolies A natural monopoly arises when there are economies of scale over the relevant range of output. Harcourt, Inc. items and derived items copyright 169。 2022 by Harcourt, Inc. GovernmentCreated Monopolies Patent and copyright laws are two important examples of how government creates a monopoly to serve the public interest. Harcourt, Inc. items and derived items copyright 169。 2022 by Harcourt, Inc. Monopoly Resources Although exclusive ownership of a key resource is a potential source of monopoly, in practice monopolies rarely arise for this reason. Harcourt, Inc. items and derived items copyright 169。 2022 by Harcourt, Inc. Why Monopolies Arise The fundamental cause of monopoly is barriers to entry. Harcourt, Inc. items and derived items copyright 169。 2022 by Harcourt, Inc. Monopoly While a petitive firm is a price taker, a monopoly firm is a price maker. Harcourt, Inc. items and derived items copyright 169。Monopoly Chapter 15 Copyright 169。 2022 by Harcourt, Inc. All rights reserved. Requests for permission to make copies of any part of the work should be mailed to: Permissions Department, Harcourt College Publishers, 6277 Sea Harbor Drive, Orlando, Florida 328876777. Harcourt, Inc. items and derived items copyright 169。 2022 by Harcourt, Inc. Monopoly ?A firm is considered a monopoly if . . . ? it is the sole seller of its product. ? its product does not have close substitutes. Harcourt, Inc. items and derived items copyright 169。 2022 by Harcourt, Inc. Why Monopolies Arise Barriers to entry have three sources: ? Ownership of a key resource. ? The government gives a single firm the exclusive right to produce some good. ? Costs of production make a single producer more efficient than a large number of producers. Harcourt, Inc. items and derived items copyright 169。 2022 by Harcourt, Inc. GovernmentCreated Monopolies Governments may restrict entry by giving a single firm the exclusive right to sell a particular good in certain markets. Harcourt, Inc. items and derived items copyright 169。 2022 by Harcourt, Inc. Natural Monopolies An industry is a natural monopoly when a single firm can supply a good or service to an entire market at a smaller cost than could two or more firms. Harcourt, Inc. items and derived items copyright 169。 2022 by Harcourt, Inc. Economies of Scale as a Cause of Monopoly... Average total cost Quantity of Output Cost 0 Harcourt, Inc. items and derived items copyright 169。 2022 by Harcourt, Inc. Competition versus Monopoly Competitive Firm ?Is one of many producers ?Has a horizontal demand curve ?Is a price taker ?Sells as much or as little at same price Harcourt, Inc. items and deri