Review Notes - Market Structure: Monopoly and Perfect Competition Compared

- What is an appropriate policy for monopolies?

Antitrust law - both the per se approach to Antitrust and the rule of reason approach.

- Why might monopolies not be inefficient? (How does each of these show the efficiency of monopoly or do they?)

- economies of scale (natural monopoly) and economies of scope (why do we sometimes regulate monopoly power?).

- contestable markets.

- price discrimination (what 3 characteristics are needed to be able to price discriminate? what is MR for a price discriminating firm?).

- externalities.

- innovation. (how are the conclusions different with patents and without patents?)