AP Economics – 11/11/19

I.  Bellwork

Different Customers, Different Prices, Thanks To Big Data

Summarize how this article relates to price differentiation and explain the methods employed.  Explain the type of customer that is targeted.

II.  Objectives

• Explain the effects of monopoly and perfect competition on society’s welfare
• Construct, analyze, and interpret graphs for monopolies to determine the profit maximizing level, price, total revenue, total cost, and profit
• Explain the allocative and productive inefficiency created by a monopoly
• Distinguish between a regulated and non regulated monopoly

III.  Turn in Homework

IV.  Discussion

Monopoly Cause Inefficiency Page 624 Figure 62.1

PPT 4.1 Monopolies on iLearn

Allocative & Productive Inefficiency

Dealing with a natural monopoly

• Public Ownership
• Regulations

Page 626 Non Regulated & Regulates Monopoly Fig 62.2

V. Classwork

• 62.1 & 62.2

VI.  AP Classroom – Monopoly

AP Micro Economics F2019