A2 M3 Lesson 8 Monopoly Curves and MC=MR Experiment

1. Elicit Monopoly diagram on board
2. Explain briefly long run equilibrium situation
3. Divide class into - money / quantity / graph reader / excel
4. Draw MC and MR curves for PC. Make 40 quantity be MC=MR. Let p = 60.
5. Get 0,10,20,30,40 on table and in Excel
6. Put £60 for MC and £60 for MR where Q=40 on table and in Excel
7. Put MR = £60 for all other qs
8. Read off MC amounts for other Qs and enter
9. Now zoom into quantities for 31-40
10. Should prove the point - draw total profit and explain that MC=MR is biggest difference between TR and TC
11. Repeat for monopolist situation with new MR

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