ECO 365 Week 3 participation Principles of Microeconomics, Ch. 15: Monopoly

Read Ch. 15 of Principles of Microeconomics:

• 15-1 Why Monopolies Arise, pp. 300-303
• 15-2 How Monopolies Make Production and Pricing Decisions, pp. 303-310
• 15-3 The Welfare Cost of Monopolies, pp. 310-313
• 15-4 Price Discrimination, pp. 314-318

Consider the following as you read:

1. Understand the terms price taker and price maker and how it relates to the consumer.
2. Consider methods to examine the implications of market power.
3. Understand methods that market power alters the relationship between a firm’s costs and the price at which it sells its product.
4. Understand methods to examine the production and pricing decisions of monopolies.