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Principles of Microeconomics / Unit 17   MIC 1627 short lesson, about 20 seconds

Monopoly, Restated

Captions available

The idea

A monopoly persists behind barriers. Facing market demand, its marginal revenue is below price, so it produces where marginal revenue equals marginal cost and charges the demand price above it: less output, higher price, a deadweight triangle and a transfer rectangle.

In practice

Quantity at the crossing; price up on demand.

Where people slip

The economist's objection is the missing output, not the profit.

Your place on the trail

Every lesson rests on earlier ones and opens later ones. Tap any to jump.

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