Monopolies and Markets -- The Missing Link

Properly functioning competitive markets are economically efficient. They create the maximum possible economic value for shareowners and customers combined.

Monopolistic markets can be inefficient. If a sole supplier maximizes its profits, the market will suffer a deadweight loss and reduced consumer surplus.

Benefit-cost analysis can help monopolies such as government agencies be more efficient.

Category:

Education

Tags:

• competition
• monopoly
• price
• profit
• utility
• willingness to pay
• consumer preference structure
• demand elasticity
• willingness to accept
• supplier cost structure
• supply elasticity
• consumer surplus
• producer surplus
• net social benefit
• average revenue
• marginal revenue
• deadweight loss
• potential Pareto improvement
• opportunity cost
• market failure
• natural monopoly

[jeremysnowdenz]

Too droned. The tone of the presentation sounds like a propaganda film of a socialist system while trying to explain capitalist concept.