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
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Builds on
Unlocks
- Nothing yet depends on this.
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