Tag: Microeconomics (Field Of Study)

Entry, Exit, and Supply Curves: Constant Costs

Entry, Exit, and Supply Curves: Constant Costs

♪ [music] ♪ – [Alex] Okay — this talk is going to be a bit more involved. What we’re going to show is how a constant cost industry generates a flat supply curve. Let’s begin. A constant cost industry is one where it’s very easy to expand output without pushing up costs. So for example, …

The Costs and Benefits of Monopoly

The Costs and Benefits of Monopoly

♪ [music] ♪ – [Alex] In our final talk in monopoly, we’re going to discuss the costs of monopoly, but also the potential benefits. The major costs of monopoly is that compared to competition, monopoly is inefficient. It leads to a loss in the gains from trade or a deadweight loss. Let’s remind ourselves about …