Reading Guide

Reading Guide for Unit 9 – Monopoly

Chapter and sections in Taylor to Read

Pg #

Comments/Assignment

11 Monopoly 213
Barriers to Entry 214 Read – important.  Pay particular attention to Exhibits 11-2, 11-5, 11-6, and most important is 11-7
  Legal Restrictions 214
Control of a Physical Resource 214
Technological Superiority 215
Natural Monopoly 216
Intimidating Potential Competition 217
Summing Up Barriers to Entry 218
How a Profit-Maximizing Monopoly Chooses Output and Price 218
  Demand Curves Perceived by a Perfectly Competitive Firm and by a Monopoly  218
Total and Marginal Revenue for a Monopolist 220
Marginal Revenue and Marginal Cost for a Monopolist 221
Illustrating Monopoly Profits 223
The Inefficiency of Monopoly 224
Conclusion 225
Key Concepts and Summary 226
Review Questions 227