(Transcript of audio with descriptions. Transcript includes narrator headings and description headings of the visual content)
(Speaker)
Next, we are going to change the industry structure to a single price monopoly.
(Description)
The graph from the slide 1 is shown.
The following text is written above the graph:
If the industry is a single-price monopoly, what quantity will the monopolist produce? Which price will it charge?
(Speaker)
In the first part of the problem, we must find quantity produced by the monopoly. Remember that a monopoly will supply up to the point where marginal revenue equals marginal cost.
(Description)
Point, H, is briefly highlighted. It is briefly labeled as A single-price monopoly sets output where MC equals MR ...
(Speaker)
Remember, a single price monopoly must lower the price to sell additional units. As the firm lowers the price, it will lose revenue From cutting the price of goods sold at the previous price, but we'll gain revenue by selling more.
For this reason, a monopoly will produce less than the combined production of the perfectly competitive firms. For this particular problem, the single price monopoly will produce I units. Since the monopoly supplies a lower quantity to the market, they can set a higher price. A monopoly will choose to price on the demand curve.
(Description)
Point, F, is briefly highlighted. It is briefly labeled as ... but choose to price on the demand curve.
(Speaker)
For this problem, the monopoly will set a price equal to B dollars.