This material analysis is so interesting
(1) The $1 is the final marginal cost MC, and the $9,999 is part of the fixed cost of input.
(2) This type of case involves a large fixed investment, but once the investment is completed, the marginal cost is quite small. Due to the technical factors involved, a "patent" is formed, and the existence of this "patent" , thus there is a monopoly, a seller's monopoly! ! Its marginal cost curve MC has always been declining. There is no MC curve that first declines and then rises like that of ordinary manufacturers. The shape is similar to the image of y=1/x. This function is in the first quadrant, which is more convex than y=1/x. Toward the origin, very close to the origin, very close! ! . The closer to the vertical axis, the higher the marginal cost. The marginal revenue curve MR slopes downward to the right. This is the same as the MR curve of general manufacturers. The slope is twice the demand curve. The demand elasticity for this type of product is quite small, resulting in the MR curve being almost vertical. Judging from the characteristics of the two curves, the equilibrium point that achieves the equilibrium condition of maximizing the manufacturer's profit (MR=MC) must be the intersection of MR and MC. .
Now let’s discuss intersections. Three cases - two intersection points, no intersection point and tangent point. The absence of an intersection point means that MC is always higher than MR, and experts will not produce "products"; of the two intersection points, one must be higher and the other lower. The lower one cannot make the average revenue ARgt from the perspective of average cost; the average cost AC must not be Experts use it to price, so you can only choose the higher one to price; look at the tangent point, combined with the characteristics of the MR curve that is almost vertical and the MC image (MR is almost vertical, MC is extremely convex to the origin), if they are tangent, this tangent point balances The price position will be very high. You can draw a picture to see it, which will also make the final uniformity very high. . . In other words: when the monopoly's profit maximization equilibrium condition (MR=MC) is met, the MC is not that "1 dollar", but higher. This is the theoretical analysis process of charging a repair fee of US$10,000.
It would be great if I could draw a picture. There is a picture here to make it more intuitive. The poster can draw a diagram based on the characteristics of MR and MC I mentioned, and combine the diagrams to see the analysis.
This can also be analyzed from the perspective of demand elasticity. The elasticity of demand is small, which means that no matter how high your price is, I still have to make repairs when I need them, and I can't do it without repairs. In this case, raising the price on the supply side will help increase "sales revenue", but to what extent? It’s hard to say to what extent, it’s not as thorough as the MR=MC analysis above.
Essay question
The triangle indicates that there are more low-income people and fewer high-income people; the rectangle indicates that the number of low-, middle- and high-income people is about the same; the circle indicates that there are few low-income and high-income people, and the middle There are many income earners. Comparatively, look at the one in the triangle. Social production capacity is not high, and low-income people account for the vast majority. At this time, increasing income is the key. Let’s leave the issue of fairness to be discussed later when income is higher. The rectangular one indicates unfair social distribution. The round one is better distributed, but not the best.
The current situation of income distribution in our country is a concave lens shape, which is similar to a rectangular distribution, which means that the distribution is unfair. To adjust the income distribution situation is to adjust the income distribution to an olive shape. . There are ready-made answers to this type of questions in general political economics textbooks, just look them up. For essay questions, write more, haha. . The material analysis above is the big question.
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