Chapter 12

Dr. Merrill

Economics Department

Chapter 12

The Monopoly Model

Barriers to Entry

Monopoly Price

Monopoly MR

Monopoly Profit

Price Elasticity: 1

Revenue & Elasticity

Demand & Elasticity

Price & MR

Price Discrimination: 1

Price Discrimination: 2

Price Discrimination: 3

Monopoly vs. Competition

Producer Surplus

Redistribution

Economies of Scope

Gains From Monopoly

Equilibrium Wages

Chapter 13

Oligopoly

Oligopoly

Evaluating Oligopoly

Concentration Ratios

HHI Index

Coordinating Decisions

Kinked Demand: 1

Kinked Demand: 2

Dominate Firm

Game Theory

Contestable Markets

Collusive Agreements

Cartels

Monopolistic Competition : 1

Monopolistic Competition : 2

Monopolistic Competition : 3

Monopolistic Competition : 4

Monopolistic Competition : 5

Chapter 14

The Four Factors

Factor Demand

Labor Demand: 1

Labor Demand: 2

Labor Demand: 3

Labor Demand: 4

Labor Elasticity

Labor Supply: 1

Labor Supply: 2

Labor Market Realities

Capital Supply: 1

Capital Supply: 2

Land Supply

Economic Rent

Transfer Earnings

Inelastic Supply

Elastic Supply

Chapter 15

Skilled Labor

Union’s Objectives

Union Wages

Monopsony: 1

Monopsony: 2

Monopsony: 3

Wage Differences

Chapter 16

Sources of Funds

Stocks & Flows

Investment Decisions

Net Present Value

Present Value

MRP of Capital

Demand for Capital

Supply of Capital

Equilibrium rate

Natural Resources

Hotelling Principle

Resource Demand

Conservation

Chapter 17

Uncertainty

Risk Neutrality

Risk Aversion

Insurance: 1

Insurance: 2

Information

Advertising: 1

Search Goods

Private Information

Moral Hazard

Adverse Selection

Financial Risks

Rational Expectations