Monopoly (Chapter 15) Presentation by Ismail Ali and Jessica Zhang
A Bad Example You know those handouts other groups printed and gave out? We did that too. On the handouts are URLs that we think will help you study for the Econ final. Thing is, we've got money in mind. A handout costs $1. Be quick, though. We've only printed ten copies.
Gotcha! Just kidding. We actually gave a few of you money to buy those handouts. The democratization of information that may have just followed is what happens over a much longer timespan in real monopolies. If you've succumbed to groupthink and bought one without us asking beforehand, let us know and we'll return it. We'll show you the URLs later.
So, what is a Monopoly? "A firm is a monopoly if it is the sole seller of its product and if its product does not have close substitutes." Translation: The only seller of a product that hasn't been duplicated Examples: The DMV, Northend, etc.
Barriers, Barriers, Barriers Monopolies exist because of one thing: Barriers. Barriers come in three flavors 1. Key resource for just one firm 2. The guv'ment 3. Costs of production=efficiency (economies of scale)
Monopoly vs. Perfect Competition, Part I Monopoly