Monopoly pricing as an antitrust offense in the U.S. and the EC: two systems of belief about monopoly?

摘要

Basic economic theory contrasts two industry structures and their outcomes: a competitive, atomistic structure, comprised of many similar firms, and a monopoly structure containing but one firm. The competitive model denies any firm the power to affect price, as all firms are price takers. Price equals marginal costs of production and the social optimum of price and output is reached. By contrast, the textbook monopoly model conveys complete control over price to a single firm, which is constrained in its pricing and output decisions only by the costs of production and the elasticity of demand. A monopolistic firm that cannot discriminate will raise its price until its marginal revenue equals its marginal costs.