Long Run Equilibrium under Monopoly AC SMC1 SAC, SMC2 LMC SMC SAC2 V6AC3 Economies Prori MR=LMC=SMC Q26
26 Long Run Equilibrium under Monopoly SMC1 SMC 2 SAC 3 LMC LAC SAC 2 SAC1 P P* SMC 3 MR=LMC=SMC 2 E Economics Profit P 0 Q Q 0 Q*
Second-best Excess Production Scale Production scale PC PC LMC G MC LMC LAC I MC LAC AC D E MR MR 0 Q
27 Second-best Production Scale Excess Production Scale
P, C LMC LAc MC Ac Min LAC MR O Q Best size
Best Size 28 Min LAC
Conditions for LR Equili. Under Monopoly (1)MR=LMc=SMO (2)MR’<LMC (3)P≥LAC
29 Conditions for LR Equili. Under Monopoly (1) MR=LMC=SMC (2)MR ’<LMC ’ (3)P ≥LAC
There is no Supply Curve under Monopoly In perfectly competitive market, We constructed the short-run supply curve by allowing the market demand curve to shift and observing the supply curve that traced out by the series of equilibrium price-quantity combination
30 There is no Supply Curve under Monopoly In perfectly competitive market, We constructed the short-run supply curve by allowing the market demand curve to shift and observing the supply curve that traced out by the series of equilibrium price-quantity combination