Monopoly

Hfst 13: Monopolie & onvolmaakte mededinging

Los 13.3, 13.4, deels 13.5

Ch 13: Monopolistic & imperfect competition

Leave 13.3, 13.4, part of 13.5

Los 13.3, 13.4, deels 13.5

Leave 13.3, 13.4, part of 13.5

Hoofstuk 13 Monopolie en onvolmaakte mededinging 3

Uitkomstes / Outcomes Onderskei tussen

verskillende markvorme Verduidelik (monopolie)

KT ewewig LT ewewig Prysdiskriminasie natuurlike monopolieë voor- en nadele beleid

Bereken en teken TR, MR, AR Ewewig Natuurlike monopolieë

Differentiate between different market forms

Explain (monopoly) SR equilibrium LR equilibrium Price discrimination Natural monopolies Pro’s & Con’s Policy

Calculate & graph TR, MR, AR Equilibrium Natural monopolies

Hersien VM / Review PC Volmaakte mededinging

Wins maksimering by …

Vraag kromme is …

Prys vasgestel deur …

Sluitingsreel

Tbl 13-1

Volmaakte mededinging

Monopolie

Perfect competition

Profit max at …

DEMAND curve is …

Price determined by …

Shut down rule

Tbl 13-1

Perfect competition

Monopolies

13-1 Markstrukture / Market structures

8 Kenmerke Tbl 13-1

8 Features Tbl 13-1

Tbl 13-1

Kenmerke VM Monopolie

Aantal firmas Baie Kopers en verkopers

Aard v produk Homogeen Slegs een produk sonder sub

Toetrede Algeheel vry Blokkeer

Info Volledig Volledig

Samespanning Onmoontlik Irrelevant

Firma se beheer oor die prys

Geen Aansienlik

Vraagkromme Horisontaal Dieselfde as Mark vraag

LT Eco wins Normale wins +

13.2 Monopolie / Monopoly

Wat is dit? NB.

VRAAG = MARKVRAAG negatiewe helling beperking (AR)

LR abnormale wins moontlik

Kwasi monopolieë Natuurlike monopolieë

Raam 13-1 9 versperrings

What is it? NB.

DEMAND = MARKET DEMAND

Negative slope Limitation (AR)

LR possible abnormal profit

Quasi monopolies Natural monopolies

Box 13-1 9 restrictions

Beperkings op toetrede

Bpk omvang vd mark Geografie, klein, afgesonder

Uitsluitlike besit van grondstowwe De Beers Consolidated

Mines Patente Lisensiering

MTN & Vodacom Alleenreg

Rupert Murdoch Invoerbeperkings Roofprysbepaling Oormaatkapasiteit

Limited size of market Geograpy

Exclusive ownership De Beers Consolidated Mines

Patents Licensing

MTN & Vodacom

Sole rights Rupert Murdoch

Import restrictions Predatory pricing Excess capacity

Restrictions to enter

Alle mark strukture / All market structures

Gemiddeld / Average

Totaal / Total

Grens / Marginal

Profit Max?

MR = MC

Quantity

TotalAve .

RQTotal

QuantityinChange

TotalinChangeinalM arg

Ewewig (Mono) / Equilibrium (Mono)

NB!!! AR = VRAAG kromme AR ≠ MR Koste struktuur NB (MC) Prys NIE vas NIE!!!

2 Reëls Sluitingsreël

P = AR < AVC, TR < TVC Winsmaksimeringsreël

MR = MC

Produseer ... MR = MC KT: AR > AVC LT: AR > AC

NB!!! AR = DEMAND curve AR ≠ MR Cost Structure NB (MC) Price NOT fixed

2 Rules Shut Down

P = AR < AVC, TR < TVC Profit max

MR = MC

Produce … MR = MC SR: AR > AVC LR: AR > AC

Tbl 13-1 & Fig. 13-1 Totale Inkome (TR)

P x Q … (AR x Q)

Gemiddelde Inkome (AR) TR ÷ Q Vraagkromme / DEMAND

Marginale Inkome (MR) (TRX – TRX-1) ÷ (QX - QX-1) Negatiewe helling / Negative

slope MR ≠ AR !!!

NB !!! P = AR, maar / but … P ≠ MR, AR ≠ MR

Vraag KrommeDemand curve

TRmax@ MR=0

Tbl 13-1 & Fig. 13-1

Fig. 13-1(a): MR & AR MR < AR, AR reguit / straight,

MR = ½ AR & 0

Fig. 13-1(b): TR TR styg / increases,

MR > 0 TR max

MR = 0 TR daal / decreases,

MR < 0

Raam/Box 13-2: MR & elastisiteit / elasticity Monopolis produseer in die

relatief elastiese sone Monopolist produces in the

relatively elastic zone

MR > 0, Ep > 1, Q... TR MR = 0, Ep = 1, TRmax

NB NOT PROFIT max NB NIE WINS maks.

MR < 0, Ep < 1, Q...TR

TRmax@ MR=0@ E=1

NB. Elasties / ElasticMonopolis se produksie soneMonopoly production zone

Fig.13-2 KT ewewig (mono) / SR equilibrium (mono)

Wins maks / Profit max MR = MC

NB! Q = ? @ MR=MC Trek vertikale lyn van ... Draw vertical line from ...

Q ... AR (VRAAG / DEMAND) Trek horisontale lyn van ... Draw horizontal line from ...

AR ... P Wins is steeds / Profit is still ...

TR – TC (P x Q) – (AC x Q) (P - AC)Q

NB! Geen AANBOD / No SUPPLY,

LT ewewig / LR equilibrium

Ekonomiese / Abnormale wins moontlik Waarom?

Economic / Abnormal profit possible Why?

Prysdiskriminasie / Price discrimination

Wat? Doel

bekom verbruikerssurplus 2 Vereistes

Prys MAKER Verbruikers markte

onafhanklik 3 Tipes

1ste Graad 2de Graad 3de Graad

What? Aim

Obtain consumer surplus 2 Requirements

Price MAKER Separate consumer

markets 3 Types

1st Degree 2nd Degree 3rd Degree

1ste Graad 1st Degree

2de Graad Hoeveelhede

2nd Degree Quantity based

3de Graad ‘Split’ markte

3rd Degree ‘Split’ markets

QUESTION 1 Wins max van ‘n monopolie? Profit max of a monopoly?

QUESTION 2 As MR + is sal TR? If MR is + then TR shall?

QUESTION 3 Oor die langtermyn kan ‘n monopolie

watse wins maak? En ‘n VM? In the long run what type of profit does a

monopoly make? And a PC?

QUESTION 4 Sluitingsreel vir beide Monopolie en VM? Shutdown rule for both the Monopoly and

MAANDAG / MONDAY Res van CH 13 Toetse Game

Hoofstuk 13 Monopolie en onvolmaakte mededinging

Los 13.3, 13.4, deels 13.5

Leave 13.3, 13.4, part of 13.5

Los 13.3, 13.4, deels 13.5

Leave 13.3, 13.4, part of 13.5

Monopolie

o Monopolie??

o Wins max?

o LT wins?

o1ste, 2de en 3de graadseprysdiskriminasie

Monopolie

Wanneer daar in ‘n bedryf slegs genoeg ruimte vir een firma is om ‘n produk doelmatig te produseer. Daardie een firma produseer ‘n produk baie goedkoper as wat twee of meer firmas daardie produk kan produseer.

AC sal selfs al bereik die gevraagde hoeveelheid ‘n maksimum.

Natuurlike monopolie / Natural monopolies

LR: LRACmin

Fig.13-4 Natuurlike monopolie pryse? Fig.13-4 Natural monopoly pricing?

• Idiaal Produseer waar: MR = MC• Allokasie: P=MC• Produksie Doeltref: AC min• P=MC .....verlies.... AC>AR•WAT NOU??

•Gov self produk vervaardig•Privaat en sub•P=AC en dus normale wins•Prys dis toepas

• Idiaal Produseer waar: MR = MC• Allokasie: P=MC• Produksie Doeltref: AC min• P=MC .....verlies.... AC>AR•WAT NOU??

• Idiaal Produseer waar: MR = MC• Allokasie: P=MC• Produksie Doeltref: AC min (BUT not the case)• P=MC .....verlies.... AC>AR•WAT NOU??

•Gov self produk vervaardig•Privaat en sub•P=AC en dus normale wins•Prysdiskriminasie toepas

Recap PC vs Monopolist Volmaakte mededinging

WINS maksimering by …

VRAAG kromme is …

PRYS vasgestel deur …

BESLUIT slegs …

P = AR = MR

Monopolie WINS maksimering by …

VRAAG kromme is …

PRYS vasgestel deur …

BESLUIT slegs …

P = AR ≠ MR

Perfect competition PROFIT max at …

DEMAND curve is …

PRICE set by …

DECIDE on …

P = AR = MR

Monopoly PROFIT max at …

DEMAND curve is …

PRICE set by ...

DECIDE on …

P = AR ≠ MR

LT ewewig van VM vs Mono ‘n Monopolie word vergelyk met die

situasie wat sou geheers het indien daar ‘n groot aantal firmas was wat die produk onder toestande van VM geproduseer het.

Kom ons kyk hoe lyk dit....

Fig.13-7 Vergelyk mono vs VM / Compare mono vs PC

AR = VRAAG / DEMAND

MC = AANBOD / SUPPLY

Monopolis / Monopolist Pm, Qm @ MR = MC

VM / PC Pc, Qc @ S = D

Fig.13-9 Die sosiale koste van ’n monopolie / DWL of mono

Selfde as Fig.13-7 Same as Fig.13-7 Onder monopolie…

Verbruiker verloor A+B Produsent verloor C Produsent wen A DWL = B+C

Under monopoly … Consumer loses A+B Producer loses C Producer gains A DWL = B+C

Is monopolie ‘n slegte ding?

Wanopvattings Enige prys vra (D)

Hoogste prys vra (MR=MC)

SLEGS econ wins (D)

Ontasbaar (Potensiele Med)

Misperceptions Any price Highest price Economic profit No competition

SelfstudieSelf study

Nadele / Drawbacks

Laer produksie Hoër prys Minder innovasie Bestuursondoelmatighei

d Hoekostefirmas kan

oorleef Swak kwaliteit Onregverdige inkome

verdeling Pagsoekery Invloedryk

Lower output Higher price Less innovation Managerial inefficiency Bad quality Unfair income

distribution Rent seeking Influential

13-6 Beleid / Policy Belasting Owerheidsbesit Regulering

Wette, reëls en regulasies Mededingingsbeleid

Monopoliebeleid M te keer om mag te misbruik

Samesmeltingsbeleid Om groei van markte tov

samesmelting te reg.

Beleid op beperkende praktyke

Mededingingskommissie

Taxation Government ownership Regulation

Laws, rules and regulations Competition policy

Monopoly policy Merger policy Restrictive practice policy

Competition commission

Monopoly

Education

The Monopoly Market power Monopoly equilibrium Welfare aspects

15 Monopoly

2.2. Monopoly

Monopoly Structure: Monopoly

Mobilsing Monopoly

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