Monopoly. Characteristics of monopoly 1.Single firm (producer, seller) 2.No variety of goods...

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Monopoly

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Transcript of Monopoly. Characteristics of monopoly 1.Single firm (producer, seller) 2.No variety of goods...

Page 1: Monopoly. Characteristics of monopoly 1.Single firm (producer, seller) 2.No variety of goods 3.Complete barriers to entry 4.Complete control over price.

Monopoly

Page 2: Monopoly. Characteristics of monopoly 1.Single firm (producer, seller) 2.No variety of goods 3.Complete barriers to entry 4.Complete control over price.

Characteristics of monopoly

1. Single firm (producer, seller)

2. No variety of goods

3. Complete barriers to entry

4. Complete control over price

Page 3: Monopoly. Characteristics of monopoly 1.Single firm (producer, seller) 2.No variety of goods 3.Complete barriers to entry 4.Complete control over price.
Page 4: Monopoly. Characteristics of monopoly 1.Single firm (producer, seller) 2.No variety of goods 3.Complete barriers to entry 4.Complete control over price.
Page 5: Monopoly. Characteristics of monopoly 1.Single firm (producer, seller) 2.No variety of goods 3.Complete barriers to entry 4.Complete control over price.

Economies of scale

Page 6: Monopoly. Characteristics of monopoly 1.Single firm (producer, seller) 2.No variety of goods 3.Complete barriers to entry 4.Complete control over price.

Government monopolies

Patent- license that gives inventor exclusive right to sell product for 20 years

Page 7: Monopoly. Characteristics of monopoly 1.Single firm (producer, seller) 2.No variety of goods 3.Complete barriers to entry 4.Complete control over price.

Government monopolies

• Franchise- right to sell a good or service in an exclusive market

Page 8: Monopoly. Characteristics of monopoly 1.Single firm (producer, seller) 2.No variety of goods 3.Complete barriers to entry 4.Complete control over price.

Government monopolies

License- government issued right to operate a business

Page 9: Monopoly. Characteristics of monopoly 1.Single firm (producer, seller) 2.No variety of goods 3.Complete barriers to entry 4.Complete control over price.

Government monopolies

Industrial organizations- an industry government allows to operate with restricted number of firms that act together

Page 10: Monopoly. Characteristics of monopoly 1.Single firm (producer, seller) 2.No variety of goods 3.Complete barriers to entry 4.Complete control over price.

Price discrimination

Dividing customers into groups based on how much they will pay for a good

Can be done if firm has market power (ability to change prices and output like a monopolist)

Page 11: Monopoly. Characteristics of monopoly 1.Single firm (producer, seller) 2.No variety of goods 3.Complete barriers to entry 4.Complete control over price.

Targeted Discounts

Page 12: Monopoly. Characteristics of monopoly 1.Single firm (producer, seller) 2.No variety of goods 3.Complete barriers to entry 4.Complete control over price.

Manufacturer’s rebates

Page 13: Monopoly. Characteristics of monopoly 1.Single firm (producer, seller) 2.No variety of goods 3.Complete barriers to entry 4.Complete control over price.

Senior citizen or student discounts

Page 14: Monopoly. Characteristics of monopoly 1.Single firm (producer, seller) 2.No variety of goods 3.Complete barriers to entry 4.Complete control over price.

Promotions


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