I.  Bellwork:  on iLearn

II.  Objectives:

Discuss monopoly inefficiencies

Construct, analyze, and interpret graphs for monopolies to determine the consumer surplus, producer surplus,and deadweight loss resulting from inefficiency

III.  Discussion:  

• Review Pages 628-629
• Homework

IV.  Notebook:  

A.  Monopolies are inefficient because they…

1. Charge a higher price
2. Don’t produce enough
   • Not allocatively efficiency
3. Produce at higher costs
   • Not productively efficiency

B.  Figure 62.1 page 624

C.  Dealing with Monopolies

• Public Ownership (Govt)
• Regulation
• Natural Monopoly and the need for Government Regulation
• Regulating Monopolies (Socially Optimal and Fair Return)- Micro Topic 6.4

V.  Classwork:

Worksheet 4.2 in Module 62 Folder on iLearn

Page 628 Check Your Understanding #1-2