As An Aside, Welcome Back "Breaking Bad"

I happen to love this show. And the premier was delightfully satisfying. So here's a tribute.

And for some economic analyis, it IS about a guy who evenually corners the market for methanphetamines in the Southwest, whether he's the producer or the wholesaler. That means his cost and revenue curves look like this (at least).

So Walt will produce at quantity MR = MC, but charge at whichever P he is producing at MR. This allows him to capture some economic rent, without escaping the economic realities of the substitution effect (at some point blow is cheaper) and the income effect (I can't afford it anymore!). In any event, it's a damn good show.