After reading this chapter, students should be able to: - Define monopoly and oligopoly markets and discuss the factors that lead to monopoly markets.
- Identify a monopolist's profit-maximizing price and sales quantity and
determine the effect of monopoly pricing on consumer and aggregate
surpluses.
- Discuss how the behavior of a monopolist differs from the behavior of
firms in a perfectly competitive market.
- Define monopsony and analyze a monopsonist's profit-maximizing
behavior.
- Describe the goals and difficulties involved in regulating monopolists.
|
