Faces a downward sloping demand curve

Wealth - maximization condition : graphical illustration

Monopoly rent is a part of cost

Traditional view : monopoly is inefficient under uniform pricing ( MUV > MC )

Modern view : monopoly is efficient even MUV > MC because of the constraint of TC

Price discrimination

- Definition

- First degree and third degree

Conditions : According to Cheung, existence of information cost is the sufficient condition for practising pd

Other monopoly pricing e.g. tie - in sale ; membership fee, all - or - nothing