All Questions
9 questions
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Monopoly markets
A monopoly can produce any output level at a constant marginal (and average) cost of θ per unit. Assume the monopoly sells its goods in two markets separated by some distance.
The demand curve in the ...
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1
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0
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369
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How can I compare surplus in monopolistic competition to surplus in monopoly?
Is there any way to compare the total surplus and consumer/producer surplus in monopolistic competition with that of perfect competition or monopoly?
All I can come up with is the idea that deadweight ...
- 35
1
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1
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216
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Will there always be excess profit in the Cournot model equilibrium/monopoly
So I'm studying market structures for the end of term, and I'm a bit confused about excess profits.
From what I can see, excess profits occur when the demand curve intersects the AC curve - the MR=MC ...
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5
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1
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247
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What has been the reception of Posner & Weyl’s claim that property rights lead to market power?
Posner & Weyl claim that property rights lead to monopoly rents:
Property Is Only Another Name for Monopoly
Radical Markets
Have their claims been elaborated, tested, or peer-reviewed?
In ...
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2
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1
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77
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Does the theory of contestable markets apply to industries where there is a natural monopoly?
The theory contestable markets requires that there be no barriers to entry, no sunk costs, and access to the same level of technology. I know common industries that have natural monopolies (like ...
- 353
1
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83
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Lerner Index Interpretation?
How do you interpret the Lerner Index?
I ask because at Uni. we have been told that, for monopoly, when the producer max. his profit, he sets the price such as the demand is elastic and the lerner ...
- 21
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2
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381
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Would you consider airport parking to be a monopoly or a monopolistic market?
If you look at it one way and group the different companies that offer parking, it could be a monopoly as that is the only place you can park. On the other hand, the different companies offer ...
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5
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2
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How can the abuses of monopoly power lead to market failure?
I know that the abuses of monopoly power can cause market failure, but I don't know why that is. I am guessing that because monopolies face a lack of competition, they have no incentive to improve ...
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7
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Benefits of a cartel among firms
Suppose I have $n>2$ firms selling differentiated products. These firms form a cartel for the price. The cartel has size $n_c$. Let $\pi_{i,m}$ be the payoff of a firm $i$ outside the cartel and $\...
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