4.2: Consequences and Sources of Market Power - Class Notes

Contents

Overview

Today we continue our look at market power, by looking at the social consequences of market power: deadweight loss, allocative inefficiency, and rent-seeking; as well as the primary causes: control over a key resource, barriers to entry, and economies of scale.

Class Livestream/Videos

Slides

Problem Set 5 Due 11:59PM Sunday April 19

Homework 5 on classes 3.1-3.3 is due by email (as a PDF) at 11:59PM Sunday April 19.

This will be your final graded homework of the semester. A reminder, the homework grade (20% of course grade) is the average of your homework grades. Again, see the grade calculator or the syllabus to estimate how this impacts your overall grade.

I will give a “homework” (with answers, of course) on Unit 4 which we are currently covering, so that you can practice for the Final exam, but I will not collect or grade it.