AP Economics – 11/07/19
I. Bellwork: on iLearn Module 61 Folder
- 61.1 –Monopoly Demand and MR
II. Objectives:
- Identify the profit maximizing price and quantity for a monopoly
- Determine whether a monopoly is making a profit or loss
- Construct, analyze, and interpret economic models for a monopoly
III. Discussion
- Demand Curve for a Monopoly Figure 61.1
- MR < P (to sell additional units price must be lowered)
- Table 61.1 Page 616 (Explain what occurs to increase demand from 11 to 12
- Price Effect and Quantity Effect P 615 & 617
- On low levels of product – decrease prices very little to sell products
- On high levels of production – necessary to decrease prices more to sell
- Figure 61.3
- MC=ATC
- MR=MC Profit Maximization level of output
- Profit = TR-TC
- “Micro 4.2 Monopoly Graph Review and Practice
- Profit Maximization, Revenue Maximization and PED in Pure Monopoly
IV. Homework on iLearn Module 61 Folder
- 4.1 Monopoly Practice
- 61.2
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