2. Monopoly One or occasionally a few firms dominate the market. Some industries are natural monopolies, such as water supply and basic power generation.
3. 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
4. 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
5. 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
6. Weaknesses Diseconomies of scale is experienced after a time being a monopoly Get Lazy Inefficient as shown on the graph
7. Impact on the Economy Discourage entry of new firms Control the market price Control the market supply Limits available choices in market
Company that knows how to lead, a company that knows how to crush the opposition, and a company that a majority abide by.
Economies Scale=Knowing how to expand to reduce costs and make more profit
Get Lazy, Inefficient – shown on graph, the bottom of the AC curve is most efficient place, when graphed, it does not hit the AC curve, it is slightly to the left.
