北大中级微观经济25-monopoly behavior
微观经济学名词解释双语版电子教案
微观经济学名词解释双语版电子教案Microeconomics Glossary Bilingual Electronic Lesson PlanWelcome to the Microeconomics Glossary Bilingual Electronic Lesson Plan! In this lesson, we will explore and explain various key terms related to microeconomics. Whether you are a student looking to supplement your economics knowledge or a curious individual interested in understanding basic economic concepts, this lesson will provide you with a comprehensive understanding of important microeconomic terms. So, let's dive in!Introduction:引言：Microeconomics is the study of individual economic units and their interactions in specific markets. By understanding key microeconomic concepts, we can better comprehend market behavior, consumer choices, and the impact of government policies on the economy. This lesson aims to provide clear and concise explanations of essential microeconomic terms, accompanied by bilingual examples to enhance understanding.Section 1: Supply and Demand第一节：供求关系1. Supply供给Supply refers to the quantity of a good or service that producers are willing and able to offer for sale at different prices during a specific timeperiod. It is determined by factors such as production costs, technological advancements, and resource availability. The law of supply states that as prices rise, the quantity supplied increases, and vice versa, assuming other factors remain constant.Example:举例：If the price of oranges increases, orange growers will be motivated to increase their supply to take advantage of the higher profits.2. Demand需求Demand represents the quantity of a good or service that consumers are willing and able to purchase at various prices during a given time period. It depends on factors such as the price of the product, consumer preferences, income levels, and the availability of substitutes. According to the law of demand, price and quantity demanded have an inverse relationship, assuming other factors remain constant.Example:举例：When the price of smartphones decreases, the demand for smartphones increases as more consumers can afford to purchase them.3. Equilibrium均衡Equilibrium refers to the point at which quantity demanded equals quantity supplied in a given market. At this point, there is no pressure for prices or quantities to change. The market reaches equilibrium when supply and demand intersect.Example:举例：In a perfectly competitive market, the equilibrium price and quantity of a product are determined solely by market forces.Section 2: Market Structures第二节：市场结构1. Perfect Competition完全竞争Perfect competition is a market structure characterized by a large number of buyers and sellers, homogeneous products, perfect information, freedom of entry and exit, and no individual market participant can influence the market price. In a perfectly competitive market, all firms are price takers.Example:举例：The agricultural market, with many farmers selling identical crops, is often considered an example of perfect competition.2. Monopoly垄断A monopoly exists when a single firm is the sole provider of a product or service in the market, giving it significant market power. Monopolies often emerge due to barriers to entry, such as exclusive ownership of essential resources or government regulations.Example:举例：The pharmaceutical company XYZ has a monopoly on a specific drug, allowing them to dictate the price and control the supply.3. Monopolistic Competition垄断竞争Monopolistic competition characterizes a market structure in which numerous firms sell differentiated products that are close substitutes. Each firm has some control over price by using advertising, branding, or product differentiation. However, they still face competition from other firms in the market.Example:举例：The fast-food industry, with various restaurants offering slightly different menus and experiences, is an example of monopolistic competition.Section 3: Market Failures第三节：市场失灵1. Externalities外部性Externalities are costs or benefits that result from the production or consumption of a good or service, affecting individuals or entities not directly involved in the transaction. Externalities can be positive (beneficial) or negative (harmful) and may lead to market failure due to the misalignment between private and social costs or benefits.Example:举例：Air pollution caused by factory emissions is a negative externality that imposes health and environmental costs on society.2. Public Goods公共物品Public goods are non-excludable and non-rivalrous goods or services. Non-excludable means that individuals cannot be excluded from enjoying the benefits of the good or service, and non-rivalrous means that one person consuming the good does not diminish its availability to others. Public goods are often provided by the government due to their difficulty to be efficiently provided by the market alone.Example:举例：Street lighting is a public good because once installed, it benefits all individuals in a community, and one person's use does not impede others' ability to benefit from it.Conclusion:结束语：Congratulations on completing the Microeconomics Glossary Bilingual Electronic Lesson Plan! In this lesson, we have explored key microeconomic terms related to supply and demand, market structures, and market failures. Understanding these terms will provide a solid foundation for further studies in economics and a better comprehension of the economic forces shaping our everyday lives.Remember, economics is a subject that constantly evolves, so it is essential to keep abreast of new concepts and developments. Continue to explore and expand your knowledge to gain a deeper understanding of the fascinating world of microeconomics.。
英文微观经济学试题及答案
英文微观经济学试题及答案一、选择题（每题2分，共20分）1. Which of the following is not a characteristic of a perfectly competitive market?A. Many buyers and sellersB. Homogeneous productsC. Free entry and exitD. Monopoly powerAnswer: D2. The law of diminishing returns states that:A. The total product of labor increases as more labor is addedB. The marginal product of labor eventually decreases as more labor is addedC. The average product of labor is always higher than the marginal productD. The marginal product of labor is always higher than the average productAnswer: B3. In the short run, a firm in a perfectly competitive market will shut down if:A. Total revenue is greater than total variable costB. Total revenue is less than total costC. Total revenue is less than total variable costD. Total revenue is less than average total costAnswer: C4. The demand for a good is likely to be more elastic when:A. The good has many close substitutesB. The good is a luxury itemC. The good is a necessityD. The good represents a small proportion of consumer's incomeAnswer: A5. The consumer surplus is the difference between:A. The maximum price a consumer is willing to pay and the market priceB. The market price and the minimum price a consumer is willing to payC. The maximum price a consumer is willing to pay and the minimum price a consumer is willing to payD. The minimum price a consumer is willing to pay and the market priceAnswer: A...（此处省略其他选择题）二、简答题（每题10分，共30分）1. Explain the concept of price elasticity of demand and itsdeterminants.Answer: Price elasticity of demand measures the responsiveness of the quantity demanded of a good to a change in its price. It is calculated as the percentage change in quantity demanded divided by the percentage change in price. The determinants of price elasticity include the availability of substitutes, the proportion of income spent on the good, the necessity of the good, and the time period over which the demand is being considered.2. What is the difference between a normal good and aninferior good?Answer: A normal good is a good for which the demand increases as income increases, while the demand for aninferior good decreases as income increases. This is because normal goods are typically considered desirable or of higher quality, while inferior goods are seen as lower quality substitutes that consumers prefer to avoid as their income increases.3. Define the law of supply and give an example.Answer: The law of supply states that, all else being equal, the quantity supplied of a good will increase as the price of the good increases, and decrease as the price of the good decreases. An example of this would be the supply of oil; if the price of oil rises, producers are more likely to increase production and supply more oil to the market.三、计算题（每题25分，共50分）1. A firm has the following total cost function: TC = 0.5Q^2 - 4Q + 100. Calculate the firm's average total cost (ATC) and marginal cost (MC) at the quantity level of Q = 50.Answer:To find the average total cost (ATC), we divide the total cost (TC) by the quantity (Q):\[ ATC = \frac{TC}{Q} = \frac{0.5Q^2 - 4Q + 100}{Q} \]At Q = 50:\[ ATC = \frac{0.5(50)^2 - 4(50) + 100}{50} = \frac{1250}{50} = 25 \]The marginal cost (MC) is the derivative of the total cost function with respect to quantity:\[ MC = \frac{dTC}{dQ} = 0.5 \times 2Q - 4 \]At Q = 50:\[ MC = 0.5 \times 2 \times 50 - 4 = 50 - 4 = 46 \]2. A monopolist faces the demand function P = 100 - 2Q and has a total cost function TC = 10Q. Calculate the profit-maximizing level of output and the corresponding price.Answer:First, calculate the marginal revenue (MR) by taking the derivative of the total revenue (TR) with respect to Q. TR is P*Q, so:\[ TR = (100 -。
微观经济学原理(第七版)-曼昆-名词解释(带英文)
微观经济学原理曼昆名词解释稀缺性(scarcity）：社会资源的有限性。
经济学（economics）：研究社会如何管理自己的稀缺资源。
效率（efficiency)：社会能从其稀缺资源中得到最多东西的特性。
平等（equality）：经济成果在社会成员中公平分配的特性。
机会成本（opportunity cost）：为了得到某种东西所必须放弃的东西。
理性人（rational people）：系统而有目的地尽最大努力实现起目标的人。
边际变动(marginal change):对行动计划微小的增量调整。
激励(incentive)：引起一个人做出某种行为的某种东西。
市场经济（market economy）：当许多企业和家庭在物品与劳务市场上相互交易时，通过他们的分散决策配置资源的经济。
产权（property rights)：个人拥有并控制稀缺资源的能力。
市场失灵（market failure）:市场本身不能有效配置资源的情况。
外部性(externality）：一个人的行为对旁观者福利的影响。
市场势力（market power)：一个经济活动者（或经济活动者的一个小集团)对市场价格有显著影响的能力。
生产率（productivity）：一个工人一小时所生产的物品与劳务量.通货膨胀（inflation)：经济中物价总水平的上升。
经济周期（business cycle)：就业和生产等经济活动的波动（就是生产这类经济活动的波动。
)循环流向图(circular-flow diagram）：一个说明货币如何通过市场在家庭与企业之间流动的直观经济模型。
生产可能性边界（production possibilities frontier）：表示一个经济在可得到的生产要素与生产技术既定时所能生产的产量的各种组合的图形.微观经济学（microeconomics）：研究家庭和企业如何做出决策，以及它们在市场上的相互交易.宏观经济学(macroeconomics）：研究整体经济现象，包括通货膨胀、失业和经济增长。
范里安-微观经济学现代观点(第7版)-24垄断(含习题解答)
Chapter 24: MonoplyIntermediate Microeconomics:A Modern Approach (7th Edition)Hal R. Varian(University of California at Berkeley)第24章:垄断（含习题含习题详细详细详细解答解答解答））中级微观经济学：现代方法（第7版）范里安 著（加州大学伯克利）曹乾 译（东南大学 caoqianseu@ ）简短说明：翻译此书的原因是教学的需要，当然也因为对现行中文翻译版教材的不满。
范里安的书一碗香喷喷的米饭，但市场中的教材却充满了沙子（翻译生硬而且错误百出）。
此次翻译的错误是微不足道的，但仍欢迎指出。
仅供教学和学习参考。
24 垄断在前几章，我们分析了竞争性行业的行为，如果行业中企业的规模普遍较小而且数量众多，那么这个行业就可能是竞争性行业。
在本章，我们分析另外一个极端，即行业中只有一家企业的市场结构，这就是完全垄断．．市场（a monopoly ）。
当某市场只有一家企业时，就不能再认为该企业是价格接受者。
相反，垄断企业会认识到它对市场价格的影响力，因此它会选择能使利润最大的价格和产量组合。
当然，它也不能独立地选择价格和产出水平；对于任何给定的价格，垄断企业只能销售市场可以承受的产量。
如果它定价高，那么它只能卖出很少的数量。
消费者的需求行为将会约束垄断企业对价格和销量的选择。
我们可以认为垄断企业选择价格，令消费者根据这个价格选择购买数量；或者我们还可以认为垄断企业选择产量，令消费者决定对于这些产量他们愿意支付的价格。
第一种方法可能更自然一些，但是第二种方法更便于分析。
当然，如果计算时不出错的话，你就会发现这两种方法是等价的。
24.1最大化利润我们首先分析垄断企业的利润最大化问题。
令)(y p 表示市场反需求曲线，)(y c 表示垄断企业的成本函数，y y p y r )()(=表示它的收入函数。
微观经济学名词解释（2）
微观经济学名词解释（2）名词解释1.Scarcity（稀缺性）The limited nature of society’sresources.社会资源的有限性。
2.Efficiency（效率）The property of society getting themost it can from its scarce resources.社会能从其稀缺资源中得到的最大利益的特性。
3.Opportunity Cost（机会成本）Whatever must be given up to obtainsome item.为了得到某种东西所必须放弃的东西。
4.Market Failure（市场失灵）A situation in which a market left onits own fails to allocate resourcesefficiently.市场本身不能有效配置资源的情况。
5.Externality（外部性）T he impact of one person’s actions onthe well-being of a bystander.一个人的行为对旁观者福利的影响。
6.Circular-flow Diagram（循环流量图）A visual model of the economy thatshows how dollars flow throughmarkets among households and firms.一个说明货币如何通过市场在家庭与企业之间流动的直观经济模型。
7.Production Possibilities Frontier（生产可能性边界）A graph that shows the combinationsof output that the economy canpossibly produce given the availablefactors of production and theavailable production technology.表示在可得到的生产要素与生产技术既定时，一个经济所能生产的产品数量的各种组合的图形。
(2024版)中级微观经济学教学大纲
可编辑修改精选全文完整版《中级微观经济学》课程教学大纲课程代码：50140035课程名称：中级微观经济学课程基本情况：1．学分：3学分学时：48学时2．课程性质：必修3．适用专业：经济学适用对象：本科4．先修课程：经济学原理、高等数学5．首选教材：范里安著，费方域译，《微观经济学：现代观点》第六版，上海：上海人民出版社。
二选教材：平新乔著，《微观经济学十八讲》，北京：北京大学出版社，2001。
参考书目：[1]、高山晟著，刘振亚译，《经济学中的分析方法》，北京：中国人民大学出版社，2001；[2]、张维迎著，《博弈论与信息经济学》，上海：上海三联出版社、上海人民出版社，1999；[3]、Hal Varian, Intermediate Microeconomics: A Modern Approach, sixth edition,W.W.Norton & Co., 2005；[4]、曼昆著，梁小民译，《经济学原理》（第3版·上、下册），北京：机械工业出版社，2003。
[5].平狄克、鲁宾费尔德著张军译，《微观经济学》第四版，北京：中国人民大学出版社，2002；[6].曼斯费尔德著，黄险峰等译，《微观经济学》（第九版），北京：中国人民大学出版社，2003；6．考核形式：闭卷考试+平时表现（期末闭卷考试占70%；平时表现占30%）7．教学环境：要具备必要的现代化教学工具，如多媒体教室。
课程教学目的及要求：微观经济学是学习和掌握现代主流经济学的基础课程，是迈进经济学殿堂的重要阶梯。
现代经济学已经发展出一整套可经证伪的理论体系，与其他社会科学相比，它更趋近于自然科学，因而是一门更为“科学”的社会科学。
本课程旨在讲述两百年来经济学关于资源配置的解释性逻辑框架，演绎新古典经济学的理论架构，培养学生经济学的思维方式，使得他们能够像经济学家那样去思考现实中的各类经济问题。
学生通过学习，一方面需要把握微观经济理论的框架体系，弄清微观经济理论的基本内容，掌握其分析方法，了解其最新发展；另一方面，也是极为重要的，需要学会如何用所学到的理论分析工具，解释和分析现实中的经济问题。
中级微观经济学第九版。Perloff版本。chapter 11
• Equivalently, a monopoly never operates in the inelastic portion of its demand curve.
11 - 16
Copyright © 2012 Pearson Education. All rights reserved.
11 - 8
Copyright © 2012 Pearson Education. All rights reserved.
Solved Problem 11.1
• Derive the marginal revenue curve when the monopoly faces the linear inverse demand function, p=24 – Q, in Figure 11.2. How does the slope of the marginal revenue curve compare to the slope of the inverse demand curve?
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Copyright © 2012 Pearson Education. All rights reserved.
Figure 11.3 Maximizing Profit
11 - 15
Copyright © 2012 Pearson Education. All rights reserved.
11 - 9
Copyright © 2012 Pearson Education. All rights reserved.
3
Solved Problem 11.1
p = 24 − Q MR = p + ∆p Q = (24 − Q) + (−1)Q = 24 − 2Q ∆Q
《微观经济学》教案不完全竞争的市场省公开课一等奖全国示范课微课金奖PPT课件
两条件
不一样市场之间能够有效分离。 被分隔开多个市场上需求弹性不一样。
第15页
价格歧视分为三类
①一级价格歧视 又称完全价格歧视。 每个单位产品售价都不一样
假如厂商已知需求曲线， 即已知消费者对每一单位产品愿意而 且能够支付最高价格， 厂商就能够逐一制订商品价格。
P P1 A
P2 B
PN
O 12
nQ
Q
第一段 第二段 第三段
厂商收益为阴影部分FCGBP1P3，当按同一价格，比如P3价格销售Q3产 量时利润为零。 阴影部分面积属消费者剩下一部分，在二级价格歧视下，厂商将这部分 消费者剩下转化成了垄断利润。
第17页
③三级价格歧视。
三级价格歧视： 对同一个产品，在不一样市场或对不一样消费者群体收取不一样价格。
产品差异可有可无。由此分为无差异寡头垄断市场和有差异寡头垄断市 场。
短期均衡条件：MR=SMC。 因为成本与需求不一样，不一定总是取得利润。
垄断厂商短期均衡有三种情况： 超额利润、无利润或蒙受损失。
第8页
a.总收益>总成本
总收益
P
＝平均收益（价格）×
产量
＝OMKN
N
总成本 ＝平均成本×产量
G
＝OMFG
MC
AC K
F
AR=P
E MR
GFKN为超额利润。
O
M
N为亏损。
（3）d曲线与D曲线关系
当全部厂商一样调整价格时，整个市场价格改变会使单个厂商主观 d曲线沿着其客观D曲线上下移动。
d：弹性大，平坦，斜率小
P
D：缺乏弹性，更陡峭。
d曲线与D曲线相交，意味着垄断 竞争市场供求平衡状态。
范里安中级微观经济学知识点总结
Giffen goods:
X2
x1 0
m px
By pXr1 ice
x 0 1
Inferior Good
px
Y
Substitution goods: x >0
Py
Complement goods: x <0
Py
Good1
Ordinary Good
Perfect complement:
X2
m’/p2
Increasing income
Budget line
Increasing price
Goods
m/p2
Budget line
Slope = - p’1/p2
m/p’1
Slope = - p1/p2 m/p1
Indifference curves: cannot cross each other.
Slope=-b Slope=-2b
dR dp
q
1
(q)
MR dR p[1 1 ] p[1 1 ]
dq
(q)
(q)
Demand, AR
AARR
A
R
qB
Pp((qq))
a/2b
a/b
QUANTITY
MR
Equilibrium
Imposing tax Passing along the MM>AM AM MM<AM 5: MM cuts AM at AM’S max or min
TM
MM(x*) AM(x*)
x Budget constraint and indifference curves: P1M X1 P2 X2 m *
清华大学中级微观经济学(清华 李稻葵 助教等)
/portalweb/appmanager/portal/semTSINGHUA UNIVERSITYSCHOOL OF ECONOMICS AND MANAGEMENT中级微观经济学2004年秋季学期Intermediate MicroeconomicsFall Semester 2004星期三Wednesday9:50 am —12:15pm六教 6A018任课教师:清华大学经济管理学院教授李稻葵Professor David D. Li助教:姜超, 冯俊新，江红平，梅松课程网页Course Web-Page:→分类讨论→中级微观经济学用户名: s311 密码：pe4028联系方式:李稻葵E-mail: lidk@电话: 6277-2126;办公室: 舜德楼南211H答疑时间: 预约姜超S972260@ 冯俊新fengjx@江宏平jianghp@ 梅松meis@习题课以及答疑时间: 星期一 & 星期二Monday & Tuesday19:00 pm —21:00 pm伟伦楼北5081.课程简介微观经济学是现代经济学的基础. 其核心理论体系之完美, 可以和物理学的牛顿力学相媲美; 其主要研究方法广泛应用于经济学的各个分支; 其思维方式,渗透了现代社会科学的主要学科. 本课程的目的就是给学生打下一个扎实的微观经济学基础, 欣赏其理论之完美和独特的思维方式, 并熟练地掌握微观经济学系统的分析工具.2.教学风格本课程属于经济学核心课程, 力求与国际最高标准接轨. 教学的文字材料(包括教材, 讲稿, 习题和考试等), 以英文为主; 口头表达以汉语为主.3.教材教材为:Hal R. Varian: Intermediate Microeconomics A Modern Approach. Sixth Edition W.W. Norton & Company. New York, NY. 2003.习题来自其附本:Theodore C. Bergstrom and Hal R. Varian: Workouts in Intermediate Microeconomics. Sixth Edition W.W. Norton & Company. New York, NY. 2003.4.习题课对大多数同学而言, 参加习题课是学好本课程的关键. 习题课上还会布置随堂习题, 成绩计入总成绩. 如果有的同学感到可以比较轻松地完全掌握教学内容, 可以选择不参加少量习题课和部分随堂习题, 不会影响总成绩, 总成绩地计算办法见下.除第一周和国庆节长周末之外, 每周将安排两节内容相同但时间不同的习题课, 大家可以任选其一参加. 具体时间另行通知.5.课程要求及考核标准微观经济学的特点是思想性与方法性并重, 要学好这门课, 学生们一定要下功夫彻底理解基本概念和基本原理, 不仅懂, 而且会讲,会用, 然后练习解题. 解题时要举一反三, 多动脑筋总结经验.根据微观经济学的这些特点, 本课程采取以下考核方式:1)随堂习题 (比重 20%) : 在习题课上进行. 题目来自Theodore C.Bergstrom and Hal R. Varian: Workouts in Intermediate MicroeconomicsSixth Edition W.W. Norton & Company. New York, NY. 2003.随堂习题的目的是鼓励学生在课下做习题, 多练习.随堂习题的总成绩是每人8个最高的随堂习题的平均值.2)期中考试 (比重 30%): 题目也将与上述习题集有关.3)期末考试 (比重 50%): 按清华大学的给定时间进行.Class ScheduleNote:Chapters refer to Hal R. Varian: Intermediate Microeconomics AModern Approach. Sixth Edition W.W. Norton & Company. New York, NY. 2003.September 15 Introduction and Overview of the CourseChapter 1 The MarketChapter 2 Budget ConstraintSeptember 22 Chapter 3 PreferencesChapter 4 UtilityChapter 5 ChoiceSeptember 29 Chapter 6 DemandChapter 7 Revealed PreferenceOctober 6 (No Class --- National Day Long Weekend)October 13Chapter 8 Slutsky EquationChapter 9 Buying and sellingOctober 20 Chapter 10 Intertemporal ChoiceChapter 11 Asset MarketsChapter 12 UncertaintyChapter 13 Risky AssetsOctober 27 Chapter 14 Consumer’s SurplusChapter 15 Market DemandChapter 16 EquilibriumNovember 3 Mid-Term ExamNovember 10Chapter 18 TechnologyChapter 19 Profit MaximizationChapter 20 Cost MinimizationNovember 17Chapter 21 Cost CurvesChapter 22 Firm SupplyChapter 23 Industry Supply November 24Chapter 24 MonopolyChapter 25 Monopoly BehaviorChapter 26 Factor Markets December 1 Chapter 27 OligopolyChapter 28 Game Theory December 8 Chapter 30 ExchangeChapter 31 ProductionDecember 15 Chapter 32 WelfareChapter 33 ExternalitiesChapter 35 Public Goods December 22 Chapter 36 Asymmetric InformationChapter 17 AuctionsDecember 29 Course Integration任课教师简介李稻葵(David D. Li) 1985年毕业于清华大学经济管理学院管理信息系统专业,同年由学院推荐参加国家教委组织的留美经济学考试(即, 邹至庄经济学留学计划),出国留学. 1985到1986,为美国哈佛大学国际发展研究所(HIID)访问学者. 1986年入该校经济系攻读博士, 从师艾里克马斯金,安德烈史莱法,以及亚诺什科尔耐, 主修经济理论,公司金融, 和比较经济学. 1992年获哈佛大学哲学博士(经济学)学位. 1992至1999任美国安娜堡密西根大学经济系助理教授并兼任该校中国研究中心研究员. 1997至1998, 从密西根大学请假,任美国斯坦福大学胡佛研究所国家研究员,从事中国经济改革的制度变迁研究. 1999至2004年长期聘为香港科技大学经济系副教授,并任该校经济发展研究中心副主任.李稻葵曾兼任世界银行中国社会保障体制改革研究项目顾问 (1989), 国际<<比较经济学杂志>> (Journal of Comparative Economics)编委 (2000-03), 中国留美经济学会(CES)会长 (2001-02), 清华大学经济管理学院特聘教授(2002-03). 现兼任(欧洲)经济政策研究中心(CEPR), 美国密西根大学威廉戴维森研究所 (The William Davidson Institute)研究员; 国际《经济学通報》(Economics Bulletin),中国<<经济研究>>,香港《中国评论》(The China Review)等学术杂志的编委; 国际比较经济研究会执行理事; 南开大学,四川大学,西南财经大学兼职教授。
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p(y)
y
y
y
y
The consumers’ gains are zero.
First-degree Price Discrimination
$/output unit
So the sum of the gains to the monopolist on all trades is the maximum possible total gains-to-trade.
Third-degree Price Discrimination
For
given supply levels y1 and y2 the firm’s profit is
( y1 , y2 ) p1 ( y1 )y1 p2 ( y2 )y2 c( y1 y2 ).
What
In
which market will the monopolist set the higher price?
Third-degree Price Discrimination
c( y1 y2 ) ( y1 y2 ) p1 ( y1 )y1 y1 y1 ( y1 y2 ) y1 0
Third-degree Price Discrimination
( y1 , y2 ) p1 ( y1 )y1 p2 ( y2 )y2 c( y1 y2 ).
Market 1
p1(y1) p1(y1*) p2(y2*)
Market 2
பைடு நூலகம்p2(y2)
MC
MC
y1*
MR1(y1)
y1
y2*
MR2(y2)
y2
MR1(y1*) = MR2(y2*) = MC and p1(y1*) p2(y2*).
Third-degree Price Discrimination
Third-degree Price Discrimination
Price
paid by buyers in a given group is the same for all units purchased. But price may differ across buyer groups.
Chapter Twenty-Five
Monopoly Behavior
How Should a Monopoly Price?
So
far a monopoly has been thought of as a firm which has to sell its product at the same price to every customer. This is uniform pricing. Can price-discrimination earn a monopoly higher profits?
MC(y)
PS
p(y)
y
y
First-degree Price Discrimination
$/output unit
The monopolist gets the maximum possible gains from trade.
MC(y)
PS
p(y)
y
y
First-degree price discrimination is Pareto-efficient.
Third-degree Price Discrimination
Two
markets, 1 and 2. y1 is the quantity supplied to market 1. Market 1’s inverse demand function is p1(y1). y2 is the quantity supplied to market 2. Market 2’s inverse demand function is p2(y2).
The profit-maximization conditions are
c( y1 y2 ) ( y1 y2 ) p1 ( y1 )y1 y1 y1 ( y1 y2 ) y1 0 c( y1 y2 ) ( y1 y2 ) p 2 ( y2 )y2 y2 y2 ( y1 y2 ) y2
Third-degree Price Discrimination
Market 1
p1(y1) p1(y1*) p2(y2*)
Market 2
p2(y2)
MC
MC
y1*
MR1(y1)
y1
y2*
MR2(y2)
y2
MR1(y1*) = MR2(y2*) = MC
Third-degree Price Discrimination
Third-degree Price Discrimination
c( y1 y2 ) p1 ( y1 )y1 p 2 ( y2 ) y2 y1 y2 ( y1 y2 )
The marginal revenue common to both markets equals the marginal production cost if profit is to be maximized.
First-degree Price Discrimination
Each
output unit is sold at a different price. Price may differ across buyers. It requires that the monopolist can discover the buyer with the highest valuation of its product, the buyer with the next highest valuation, and so on.
Types of Price Discrimination
1st-degree:
Each output unit is sold at a different price. Prices may differ across buyers. 2nd-degree: The price paid by a buyer can vary with the quantity demanded by the buyer. But all customers face the same price schedule. E.g. bulk-buying discounts.
values of y1 and y2 maximize profit?
Third-degree Price Discrimination
( y1 , y2 ) p1 ( y1 )y1 p2 ( y2 )y2 c( y1 y2 ).
The profit-maximization conditions are
p( y )
p( y )
Sell the y th unit for $p( y ). Later on sell the y th unit for $p( y ). Finally sell the y th unit for marginal cost, $ p( y ).
Third-degree Price Discrimination
c( y1 y2 ) p1 ( y1 )y1 p 2 ( y2 ) y2 y1 y2 ( y1 y2 )
Third-degree Price Discrimination
c( y1 y2 ) p1 ( y1 )y1 p 2 ( y2 ) y2 y1 y2 ( y1 y2 )
First-degree Price Discrimination
First-degree
price discrimination gives a monopolist all of the possible gains-to-trade, leaves the buyers with zero surplus, and supplies the efficient amount of output.
Third-degree Price Discrimination
A
monopolist manipulates market price by altering the quantity of product supplied to that market. So the question “What discriminatory prices will the monopolist set, one for each group?” is really the question “How many units of product will the monopolist supply to each group?”
MR1(y1) = MR2(y2) says that the allocation y1, y2 maximizes the revenue from selling y1 + y2 output units. E.g. if MR1(y1) > MR2(y2) then an output unit should be moved from market 2 to market 1 to increase total revenue.
Types of Price Discrimination
3rd-degree: