Topic
Monopoly
Reading(s)
Nicholson/Snyder Chapter Class
14
activity
Moderate
Assessment
None
11th-12th January
Challenge level
Problem Set M-1
• Single-variable optimization
• Finding area under the curve through integration
• Graphs of linear functions
• Lagrange method of optimization
• Interpretation of Lagrange multiplier
Key
• Inverse elasticity rule and Lerner’s index
concepts/terms
• Natural monopoly
• Price discrimination
o Perfect price discrimination
o Third degree price discrimination
o Second degree price discrimination, two-part tariff and Oi tariff
• Deadweight loss of monopoly
• Regulating a monopoly
Additional
Good discussion of natural monopoly:
references
https://www.economicsonline.co.uk/Business_economics/Natural_monopolies.html
Explore further Podcasts:
for real-world
A monopolist charging a price of zero!
examples and
https://www.npr.org/sections/money/2018/07/23/631652230/google-s-mobile-monopoly
applications
Gender and price discrimination
https://www.npr.org/2019/08/15/751440592/the-gender-gap-series-the-problem-with-the-pink-tax
Dates
Pre-requisites