Monopoly Identify characteristics of a monopoly Monopoly Natural

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Monopoly Identify characteristics of a monopoly. Monopoly Natural Monopoly Patent BAUMAN 2019

Monopoly Identify characteristics of a monopoly. Monopoly Natural Monopoly Patent BAUMAN 2019

A monopoly is a market dominated by a single seller. BAUMAN 2019

A monopoly is a market dominated by a single seller. BAUMAN 2019

Monopoly • In general, monopolies are illegal. • Monopolies lead to higher prices, inferior

Monopoly • In general, monopolies are illegal. • Monopolies lead to higher prices, inferior quality of products, and reduced supply. BAUMAN 2019

Monopolies do not benefit consumers. BAUMAN 2019

Monopolies do not benefit consumers. BAUMAN 2019

Antitrust Laws • The government prevents monopolies from forming or breaks them up. •

Antitrust Laws • The government prevents monopolies from forming or breaks them up. • Prevent the formation and continuation of monopolies. BAUMAN 2019

Natural Monopolies • Government allows some monopolies. • Natural monopoly occurs when a market

Natural Monopolies • Government allows some monopolies. • Natural monopoly occurs when a market runs most efficiently with one firm. • An example is public water. BAUMAN 2019

Rather than building an overlapping network of pipes, one company serves customers best. BAUMAN

Rather than building an overlapping network of pipes, one company serves customers best. BAUMAN 2019

Patents • Provides a supplier with monopoly power. • License given to the inventor

Patents • Provides a supplier with monopoly power. • License given to the inventor to be the sole supplier for a number of years. • Incentive for invention. BAUMAN 2019

The Market Spectrum • In perfect competition, many sellers sell identical products. • In

The Market Spectrum • In perfect competition, many sellers sell identical products. • In a monopoly, a single seller is the sole supplier. BAUMAN 2019

Questions for Reflection: 1. Define monopoly. 2. List three problems created by monopolies. 3.

Questions for Reflection: 1. Define monopoly. 2. List three problems created by monopolies. 3. Why does the government enforce Antitrust laws? 4. Why is public water a natural monopoly? BAUMAN 2019

6 MONOPOLY Contents monopoly characteristics causes of monopoly6 MONOPOLY Contents monopoly characteristics causes of monopoly
Monopoly Characteristics of a Monopoly Pure Monopoly existsMonopoly Characteristics of a Monopoly Pure Monopoly exists
Monopoly Monopoly Why u Natural monopoly increasing returnsMonopoly Monopoly Why u Natural monopoly increasing returns
Natural Monopoly Natural Monopoly an industry in whichNatural Monopoly Natural Monopoly an industry in which
CHAPTER 14 Monopoly Monopoly A monopoly monopolist meansCHAPTER 14 Monopoly Monopoly A monopoly monopolist means
Monopoly Outline Pure monopoly Barriers to entry MonopolyMonopoly Outline Pure monopoly Barriers to entry Monopoly
Monopoly 15 Monopoly A firm is a monopolyMonopoly 15 Monopoly A firm is a monopoly
Chapter 11 Monopoly Defining Monopoly Monopoly a marketChapter 11 Monopoly Defining Monopoly Monopoly a market
Ch 13 Monopoly Causes of monopoly Monopoly pricingCh 13 Monopoly Causes of monopoly Monopoly pricing