money, monopoly, and market intervention, lecture 2 with robert murphy - mises academy
DESCRIPTION
For lecture videos, readings, and other class materials, you can sign up for this independent study course at academy.mises.org.TRANSCRIPT
![Page 1: Money, Monopoly, and Market Intervention, Lecture 2 with Robert Murphy - Mises Academy](https://reader033.vdocument.in/reader033/viewer/2022052905/55846c94d8b42aca538b467f/html5/thumbnails/1.jpg)
Money, Monopoly & Market Intervention
Robert P. MurphyMises Academy
October 12, 2011
Lecture 2: 2nd half of Chapter 10 of Man, Economy, and State
![Page 2: Money, Monopoly, and Market Intervention, Lecture 2 with Robert Murphy - Mises Academy](https://reader033.vdocument.in/reader033/viewer/2022052905/55846c94d8b42aca538b467f/html5/thumbnails/2.jpg)
2nd Half ofChapter 10 of MES
1. Illusion of Monopoly Price A. Definition of Monopoly..
2. Unions and Restrictionist Wages
III. Monopolistic Competition
IV. Patents vs. Copyrights
![Page 3: Money, Monopoly, and Market Intervention, Lecture 2 with Robert Murphy - Mises Academy](https://reader033.vdocument.in/reader033/viewer/2022052905/55846c94d8b42aca538b467f/html5/thumbnails/3.jpg)
I. Illusion ofMonopoly Price
![Page 4: Money, Monopoly, and Market Intervention, Lecture 2 with Robert Murphy - Mises Academy](https://reader033.vdocument.in/reader033/viewer/2022052905/55846c94d8b42aca538b467f/html5/thumbnails/4.jpg)
A. Definitions of Monopoly/Monopolist
“Can control its price.”
“The only seller of a given good.”
“A grant of special privilege by the State, reserving a certain area of
production to a group or individual.”
“Person who has received a monopoly price.”
![Page 5: Money, Monopoly, and Market Intervention, Lecture 2 with Robert Murphy - Mises Academy](https://reader033.vdocument.in/reader033/viewer/2022052905/55846c94d8b42aca538b467f/html5/thumbnails/5.jpg)
B. Is a Trademark aGov’t Monopoly?
![Page 6: Money, Monopoly, and Market Intervention, Lecture 2 with Robert Murphy - Mises Academy](https://reader033.vdocument.in/reader033/viewer/2022052905/55846c94d8b42aca538b467f/html5/thumbnails/6.jpg)
C. Review: Neoclassical Monopoly Theory
Rothbard, following Mises, stresses that monopoly price can only occur if original “competitive” price occurred on inelastic portion of demand curve.
But current neoclassicals would disagree. Even if Total Revenue goes down by restricting output, it makes sense to do so (on the margin) because Total Costs fall too. Thus Profit goes up, even if monopolist reduces output from a point originally on the elastic portion of the demand curve.
![Page 7: Money, Monopoly, and Market Intervention, Lecture 2 with Robert Murphy - Mises Academy](https://reader033.vdocument.in/reader033/viewer/2022052905/55846c94d8b42aca538b467f/html5/thumbnails/7.jpg)
D. Monopoly Profit vs. Monopoly Gain
![Page 8: Money, Monopoly, and Market Intervention, Lecture 2 with Robert Murphy - Mises Academy](https://reader033.vdocument.in/reader033/viewer/2022052905/55846c94d8b42aca538b467f/html5/thumbnails/8.jpg)
E. Cutthroat Competition
![Page 9: Money, Monopoly, and Market Intervention, Lecture 2 with Robert Murphy - Mises Academy](https://reader033.vdocument.in/reader033/viewer/2022052905/55846c94d8b42aca538b467f/html5/thumbnails/9.jpg)
F. No Such Thing as “Competitive” Price!
![Page 10: Money, Monopoly, and Market Intervention, Lecture 2 with Robert Murphy - Mises Academy](https://reader033.vdocument.in/reader033/viewer/2022052905/55846c94d8b42aca538b467f/html5/thumbnails/10.jpg)
G. Why not P=MC?
![Page 11: Money, Monopoly, and Market Intervention, Lecture 2 with Robert Murphy - Mises Academy](https://reader033.vdocument.in/reader033/viewer/2022052905/55846c94d8b42aca538b467f/html5/thumbnails/11.jpg)
II. Unions and “Restrictionist” Price
![Page 12: Money, Monopoly, and Market Intervention, Lecture 2 with Robert Murphy - Mises Academy](https://reader033.vdocument.in/reader033/viewer/2022052905/55846c94d8b42aca538b467f/html5/thumbnails/12.jpg)
� Voluntary Unions?
![Page 13: Money, Monopoly, and Market Intervention, Lecture 2 with Robert Murphy - Mises Academy](https://reader033.vdocument.in/reader033/viewer/2022052905/55846c94d8b42aca538b467f/html5/thumbnails/13.jpg)
III. Monopolistic Competition
![Page 14: Money, Monopoly, and Market Intervention, Lecture 2 with Robert Murphy - Mises Academy](https://reader033.vdocument.in/reader033/viewer/2022052905/55846c94d8b42aca538b467f/html5/thumbnails/14.jpg)
A. Flipping the Argument…
![Page 15: Money, Monopoly, and Market Intervention, Lecture 2 with Robert Murphy - Mises Academy](https://reader033.vdocument.in/reader033/viewer/2022052905/55846c94d8b42aca538b467f/html5/thumbnails/15.jpg)
B. Jagged Cost Curve
![Page 16: Money, Monopoly, and Market Intervention, Lecture 2 with Robert Murphy - Mises Academy](https://reader033.vdocument.in/reader033/viewer/2022052905/55846c94d8b42aca538b467f/html5/thumbnails/16.jpg)
IV. Patent vs. Copyright