In my quest (at the moment, it seems impossible) to finish grades by Monday, I totally forgot to post some links and questions for you guys & gals! I know, I know...inexcusable. :) I don't have a better one. I *did* learn, though, that I should know better than to pile on big things (freshmen) at the end of a quarter. I haven't been this swamped at grading time in years.
I know that out of the goodness of your hearts, you'd be willing to let me NOT grade your term papers, but I won't let you sacrifices yourself (selves?) for that. :) :)
Okay - here we go:
http://www.reffonomics.com/monopoly1.ppt Introduction to Monopoly. It starts with info on copyright, trademark, etc that is useful for possible questions on the test.
http://apecon.us/monopolyperfectcompetition.gif (Price searcher = price taker) This is on MR & D curves and compare PC, M & MC (which we haven't gotten to yet, but shouldn't be too confusing)
http://www.reffonomics.com/monopoly3.html Monopoly graph
1. Explain why the MR facing a competitive firm differs from the MR facing a monopolist.
2. Even if PC does not exist, why is it important to the study of microeconomics?
3. Why is the demand curve for a monopolist different from the PC demand curve?
4. Singer Diddy has a monopoly over a scarce resource: himself. He is the only person who can produce a Diddy concert. Does this fact imply that the government should regulate the prices of his concerts? Why or why not?
5. Why is the equality of marginal cost and marginal revenue essential for profit maximization in all market structures? Why can price be substituted for MR in the MR=MC rule when an industry is perfectly competitive?
6. Assume that a pure monopolist and a purely competitive firm have the same unit costs. Contrast the two with respect to (a) price, (b) output, (c) profits, and (d) allocation of resources. Since both monopolists and perfectly competitive firms follow the MC = MR rule in maximizing profits, how do you account for the different results? Why might the costs of a PC firm and a monopolist be different? What are the implications of such a cost difference?