pros, cons evaluation of monopoly power

Question 1

cons of monopolies

Answer 1

-allocative, produttive and x-inefficency
-inequalities in necessity market
-deadweight loss between PM and PC (MC=MR qm left, pc down)

Question 2

pros of monopoly power

Answer 2

-dynamic efficiency
-greater economies of scale
-natural monopoly
-cross sub

Question 3

evaluation of monopoly power

Answer 3

-dynamic efficiency? shareholder, deleverage
-economies of scale or diseconomies
-objective: assume profit max or sales max
-regulation: help reduce efficiencies
-price discrimination
-natural