Monopoly Prices

I have been tidying up my hard disks, and came across this paper, written by me called, “Why Monopolies make super-profits?” which I wrote in 2009/2010 to codify my thoughts on monopoly. The pseudo abstract says,

Monopolies restrict supply and offer their goods at prices above an equilibrium price, which is the opportunity cost of the resources used to make the goods. In doing so they make super-profits. This paper looks at how and why this is. It is based on an ABC of Economics, my memories of my Economics classes at school and university and a more recent reading of Begg et al’s “Economics”.

Dave LEVY

It looks at profit maximisation, supply and demand and the nature of competition. It does not look at aggregate welfare underproduction, nor on the lost social costs in building and defending the monopoly. Maybe a re-write is required.