11. Monopoly I

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MIT 14.01 Principles of Microeconomics, Fall 2018
Instructor: Prof. Jonathan Gruber
View the complete course: ocw.mit.edu/14-01F18
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In this lecture, Prof. Gruber takes what the class has already learned and applies it to more realistic situations, specifically monopoly profit maximization and welfare effects.
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Пікірлер: 56

@domsjuk 3 жыл бұрын

This course maximizes social welfare! :D

@jamescalderon289 3 жыл бұрын

18:53 is a good explanation as to why the monopolist will not produce in the inelastic portion of the demand curve. As a PhD student I will say that this is a very popular question even at the advanced level

@otajonabduraxmonov3453 3 жыл бұрын

maybe monopolist willl not produce in Elastic portion, bcs if E>1 he said monopolist will lose money by producing one more unit

@bipinmaurya3824 2 жыл бұрын

Hi friends. Can you guide me to follow any books along with these lecture

@romesaazharawan1617 2 жыл бұрын

@@bipinmaurya3824 Microeceonomics Jeffery M. Perloff

@Itsaboutdee Жыл бұрын

I honestly wish he could be my lecturer due to the way that he explains the work and makes use of simple examples that will stick and make things less complicated.

@camilosanchez5696 2 жыл бұрын

This is incredible. Thank you MIT

@AmitSahu-bu4ul 2 жыл бұрын

Thanks for Providing such an Intersecting & Informative Lecture.

@brainstormingsharing1309 3 жыл бұрын

Absolutely well done and definitely keep it up!!! 👍👍👍👍👍

@pmum150 4 жыл бұрын

Informative lecture..

@radhikagupta419 3 жыл бұрын

great lecture!

@shaatiusmani6211 4 ай бұрын

Such an enjoyable lecture!! Loved it

@BrunoPeitl84 Ай бұрын

15:07 There is an error on the slide. The demand function is P = 24 - Q, there is P = 24 - 2Q.

@gunaypnahova7094 Жыл бұрын

This lecture is beneficial for society

@gunaypnahova7094 8 ай бұрын

Thanks Thierry lecture is benefical for society

@shivpuri5769 Жыл бұрын

at 15:22 the equation for the demand curve should 24 -Q and not 24-2Q

@2l375 Жыл бұрын

yeah thats what I thought, but no one in the class pointed out ...

@jamesazever5907 2 жыл бұрын

Beneficial

@Alibeysuleimanoglu 2 ай бұрын

The slide on 15:25 reads Demand= 24-2q, it should be Demand =24-q.

@cameronhetzler5407 2 жыл бұрын

This professor is amazing but I can’t help but get Steve Carrell vibes from The Big Short. And I’m here for that!

@cristianofanvivo7904 2 жыл бұрын

legendary

@samm1883 2 жыл бұрын

There’s nothing else to do in Orlando are you serious 🧐

@navinmurarka9613 2 жыл бұрын

In 8:00 there is no need to consider marginal cost zero since we are talking about marginal revenue.

@janweeprajapati7180 Жыл бұрын

Well....it was jst for the sake of simplicity ig

@uditabhattacharya2824 6 ай бұрын

PROFIT MAX ONWARDS

@hogaak6549 3 жыл бұрын

Why is the demand curve and marginal revenue curve exactly the same: 24 - 2Q and yet they have different slopes?

@ImVedanshAgarwal 3 жыл бұрын

Yaa in the graph it should be , Q= 24-P ( look at 15.00 ), equations are : - P= 24-Q --------eq-1 MR = 24-2Q ---------eq-2 Flip the eq---1 And you get , Q= 24-P ----------eq-3 So graph is made up of eq-2 & eq-3.

@forthrightgambitia1032 2 жыл бұрын

@@ImVedanshAgarwal Better to think in the general case. Q = a - bP, P= (a - Q)/b, R = (aQ - Q^2)/b, MR = (a - 2Q)/b. So the slope of the original inverse demand curve -1/b will be = -2/b for any linear demand curve. As he says this would be a different relation in non-linear demand curves. This is because you have both the original price curve (a - Q)/b (dq/dq * P) and the new factor (dp/dq*Q = -Q/b) from the product rule. The -Q/b is EXACTLY the poisoning effect he talks about. Geometrically if you imagine the change, the bounding box of revenue (P*Q) is expanding to the right by the first term and being dragged down smaller by the second... at the limit.

@egpalomo 11 ай бұрын

The equation shd be p=24-q

@egpalomo 11 ай бұрын

Demand equation

@swapnilukey8412 3 жыл бұрын

oneplus price discrimination in India vs US

@ericcarson342 Жыл бұрын

Is this principles? This lecture seems more advanced than beginner level.

@Alibeysuleimanoglu 2 ай бұрын

I'm happy I spotted an error in one of the slides. How do I give feedback to the professor?

@mitocw 2 ай бұрын

ocw.mit.edu/contact/

@HonestFranklin 2 жыл бұрын

Financial accounting, cost management, financial management, tax accounting, commercial law, economics and business administration. Supplementary materials include lectures on commercial law, economics in one book, financial accounting notebooks, and tax law notebooks. The rest is the same problem-solving method.

@hogaak6549 3 жыл бұрын

The Prof. is not very explicit regarding change in R/change in Q. Revenue is PQ. Differentiating Revenue with respect to Q gives the result in 11:22.

@apnaustaad9818 3 жыл бұрын

He is only trying to make things clear by graphs and physical interpretations. His explanation of the equation says it all! Mathematics is only a tool

@suppandi1000 3 жыл бұрын

The mathematical aspect in his class is covered mostly by TAs, not the professor. He relies more on intuition.

@josefloresmogollon4737 2 жыл бұрын

33.57

@morninglory8988 3 жыл бұрын

19:24 I think the Professor said it the other way around. Monopolist wants to be at the elastic portion of the demand curve.

@vaibhavkeshari9620 2 жыл бұрын

Inelastic product demand is good for producers, elastic product demand is good for consumers.

@MichaelTaiwanese 2 жыл бұрын

I think the reason monopolists favor to be at the the elastic portion of the demand curve is because they get to maximize their profit. It is not contradict to the fact that at the same elastic portion of demand by producing more will the monopolist lose profit. Monopolists don't produce at the inelastic part of the demand curve simply because the outcome is not optimal profit maximization EVEN THOUGH they will get more profit by producing more. Therefore, I don't think the Professor's lecture is wrong. *If I am wrong feel free to correct me.

@ooopni 2 жыл бұрын

Absolute Value

@martingenet8799 3 жыл бұрын

at the end, when he discussed super market prices, he jumped to some conclusion about charging a lot bc people have to walk but that's incorrect. almost any time a company has a real estate cost (like rent for a super market) the rent is way higher in cities. this requires a greater markup.

@jamescalderon289 3 жыл бұрын

Not really, super market's in the city can sell more quantity due to their location, and the fact that they sell more in turn drives the rent up

@martingenet8799 3 жыл бұрын

@@jamescalderon289 i realize rent is a product of opportunity but that doesn't mean the rent is not the cost they need to cover before they make a profit. even if people bought less on each trip if they came back more frequently bc they still consume as much it would not be a big deal if instead of one big shopping trip per week they broke it down to 2. you can try to argue economies of scale like costco, as though customer by each item in bigger quantity, but not if they are buying the same pint of ice cream in both the downtown and the suburbs and that pint comes from the same distributor.

@jamescalderon289 3 жыл бұрын

@@martingenet8799 they need to ensure they will be profitable in order to set up shop in the city however thats not what causes the mark up in cities. Products tend to be more expensive in cities due to higher demand