Latest Articles
Competitive Strategy (7/7/2006)
Static efficiency in mature products may be good for consumers in the short run, but dynamic efficiency in innovative products is what drives the economy and elevates consumer welfare in the long run.
Static efficiency in mature products may be good for consumers in the short run, but dynamic efficiency in innovative products is what drives the economy and elevates consumer welfare in the long run.
Income Distribution (7/7/2006)
In the U. S., the top income group has been gaining relative to the rest of the population due to globalization, but the belief in upward mobility is still strong.
In the U. S., the top income group has been gaining relative to the rest of the population due to globalization, but the belief in upward mobility is still strong.
Regulation vs price discrimination under natural monopoly (6/30/2006)
Even if ATC is entirely above the demand curve where not even a single-pricing monopoly would want to produce, price discrimination could still ensure profit for the natural monopoly without any government regulation.
Even if ATC is entirely above the demand curve where not even a single-pricing monopoly would want to produce, price discrimination could still ensure profit for the natural monopoly without any government regulation.
Profit maximization under natural monopoly - single pricing vs price discrimination (6/30/2006)
The price-discriminating natural monopoly can achieve higher output and higher profit because its TR (=TWP) reflects full marginal price for every unit... while the TR of the single-pricing firm reflects the same average price for every unit.
The price-discriminating natural monopoly can achieve higher output and higher profit because its TR (=TWP) reflects full marginal price for every unit... while the TR of the single-pricing firm reflects the same average price for every unit.
Generating ATC and MC of natural monopoly (6/30/2006)
High fixed cost and low marginal cost means that marginal cost is always below average total cost given the market demand.
High fixed cost and low marginal cost means that marginal cost is always below average total cost given the market demand.
