Monopoly I

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Session Overview

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In the previous lectures, we began to learn about firms' decisions in a competitive market where there are a large number of firms. However, different markets have different characteristics, and in some markets there may be only one or a few firms. In this lecture, we begin to learn about the operations of a monopoly market, where only one firm is producing a given good.

The game Monopoly is named after the economic concept, in which one firm dominates an entire market. Image courtesy of William Boncher on Flickr.

Keywords: Monopoly; marginal revenue; marginal cost; profit maximization; shutdown rule; market power; price discrimination.

Session Activities

Readings

Before watching the lecture video, read the course textbook for an introduction to the material covered in this session:

  • [R&T] Chapter 10, "Monopoly."
  • [Perloff] Chapter 11, "Monopoly." (optional)

Lecture Videos

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Resources

Check Yourself

Concept Quiz

This concept quiz covers key vocabulary terms and also tests your intuitive understanding of the material covered in this session. Complete this quiz before moving on to the next session to make sure you understand the concepts required to solve the mathematical and graphical problems that are the basis of this course.

 

Further Study

These optional resources are provided for students that wish to explore this topic more fully.

Textbook Study Materials

See the [Perloff] chapter for the topics covered, as well as quizzes, applications, and other related resources.

 

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