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Monopoly One or occasionally a few firms dominate the market. Some industries are natural monopolies, such as water supply and basic power generation.
Topics to be discussed The Nature of a Monopoly Our Strengths (We have many) Our weaknesses (what weaknesses?) Our methods of determining costs, profits, and revenues. The impact we have on an Economy
Nature of a Monopoly Only company in a Market. Builds numerous (expand) Barriers of Entry to keep monopoly status. Sells unique ideas Specialized methods of execution are not shared
Strengths WE know how to stay on top Understand how to eliminate opposition Know how to expand Dominance over natural resources Economies of scale = Successful Capital Requirements Superiority in Technology
Weaknesses Diseconomies of scale is experienced after a time being a monopoly Get Lazy Inefficient as shown on the graph
Impact on the Economy Discourage entry of new firms Control the market price Control the market supply Limits available choices in market