This chapter is a kind of companion to the Perfect Competition chapter. By making key changes in the analysis, we gain a theoretical picture of the behavior of the "opposite" market structure. Carefully read the section called Price and Output Decisions in Pure Monopoly Markets, also the section: The Social Costs of Monopoly.
Assignment: Problem Set #6 (this is the unusual case of a monopolist in trouble, but still a worthwhile application of the monopoly model).