Monopolies Monopoly Monopoly is defined as a persistent

Monopoly • Monopoly is defined as a persistent market situation where there is only

Profit • Profit is the value gained from business operations. • There are two

Market • A mechanism which allows people to trade goods and services. • It

Entrepreneur • A person who brings a new or existing product to a new

Monopolies in the U. S. • Monopolies exist and may be legal in the

U. S. vs. Microsoft • In the case, United States v. Microsoft, twenty states

Railroad Monopolies • Railroads were the first industry to be regulated by the federal

Conclusion • Entrepreneurs bring products to the market place. • Dominating a market is

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Monopolies

Monopoly • Monopoly is defined as a persistent market situation where there is only one provider of a product or service. • They are characterized by a lack of economic competition. • A type of market form that businesses operate in. For a further definition of Monopoly visit • the Econedlink glossary • Amos. Web GLOSS*arama

Profit • Profit is the value gained from business operations. • There are two kinds of profit: • Economic • Accounting See further definition of Profit visit • the Econedlink glossary • Amos. Web GLOSS*arama

Market • A mechanism which allows people to trade goods and services. • It is usually governed by the laws of supply and demand. See further definition of Market visit • the Econedlink glossary • Amos. Web GLOSS*arama

Entrepreneur • A person who brings a new or existing product to a new or existing market. • They are willing to take the personal, professional, and financial reisk to bring the products to markets. See further definition of Entrepreneur visit • the Econedlink glossary • Amos. Web GLOSS*arama

Monopolies in the U. S. • Monopolies exist and may be legal in the U. S. • In the past, the railroad industry was consolidated into a monopoly. • Microsoft and IBM are examples of other companies that developed into monopolies over time. Read the following article that compares the concerns with railroad monopolies of the 19 th century with technology companies of the early 21 st.

U. S. vs. Microsoft • In the case, United States v. Microsoft, twenty states and the U. S. Department of Justice alleged that Microsoft abused its monopoly power by limiting competition in operating system and web browser sales. This 2002 article from WIRED provides a timeline of the events.

Railroad Monopolies • Railroads were the first industry to be regulated by the federal government. • The railroads limited competition, set prices, and controlled markets in geographic areas.

Conclusion • Entrepreneurs bring products to the market place. • Dominating a market is beneficial to a business. • How a business dominates the market determines whether it is a legal or illegal monopoly.