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Markup rule : ウィキペディア英語版
Markup rule
A markup rule refers to the pricing practice of a producer with market power, where a firm charges a fixed mark up over its marginal cost.〔Roger LeRoy Miller, ''Intermediate Microeconomics Theory Issues Applications, Third Edition'', New York: McGraw-Hill, Inc, 1982.〕〔Tirole, Jean, "The Theory of Industrial Organization", Cambridge, Massachusetts: The MIT Press, 1988.〕
==Derivation of the markup rule==

Mathematically, the markup rule can be derived for a firm with price-setting power by maximizing the following equation for "Economic Profit":
: \pi = P(Q)\cdot Q - C(Q)
:where
:Q = quantity sold,
:P(Q) = inverse demand function, and thereby the Price at which Q can be sold given the existing Demand
:C(Q) = Total (Economic) Cost of producing Q.
: \pi = Economic Profit
Profit maximization means that the derivative of \pi with respect to Q is set equal to 0. Profit of a firm is given by total revenue (price times quantity sold) minus total cost:
:P'(Q)Q+P-C'(Q)=0
: where
:Q = quantity sold,
:P'(Q) = the partial derivative of the inverse demand function.
:C'(Q) = Marginal Cost, or the partial derivative of Total Cost with respect to output.
This yields:
:P'(Q)
*Q + P = C'(Q)
or "Marginal Revenue" = "Marginal Cost".
:P(P'(Q/P)+1)=MC
By definition P'(Q/P) is the reciprocal of the price elasticity of demand (or 1/ \epsilon). Hence
:P(1+1/)=MC
This gives the markup rule:
:P=\frac MC
or, letting \eta be the reciprocal of the price elasticity of demand,
:P=\frac MC
Thus a firm with market power chooses the quantity at which the demand price satisfies this rule. Since for a price setting firm \eta<0 this means that a firm with market power will charge a price above marginal cost and thus earn a monopoly rent. On the other hand, a competitive firm by definition faces a perfectly elastic demand, hence it believes \eta=0 which means that it sets price equal to marginal cost.
The rule also implies that, absent menu costs, a firm with market power will never choose a point on the inelastic portion of its demand curve.

抄文引用元・出典: フリー百科事典『 ウィキペディア(Wikipedia)
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