Learning Objectives

After reading this chapter, you should be able to

13.1 Define monopoly.

13.2 Describe and explain why marginal revenue is less than price in the monopoly model.

13.3 Explain how a monopolist determines its price and output.

13.4 Describe and explain the inefficiencies of monopoly.

13.5 Describe how monopoly regulation influences output, price, economic profit, and efficiency.

13.6 Describe and explain how a firm can increase its profits through price discrimination.