Monopolists of the world

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Monopolists of the world

  1. 1. Monopolists of the world
  2. 2. What is a monopoly?A monopoly is the sole supplier of a productLeast competitive market structureThe monopolist’s are the price settersHigh barriers of entrySloping demand curveFamous board game
  3. 3. Advantages and disadvantages of monopoliesAdvantages DisadvantagesSupernormal profits gives monopolists funds Supernormal profits is a disincentive to befor research and development more efficient to develop new productsMonopoly power means the firms will have Monopolists do not produce at the mostfinancial power to match large overseas productively efficient point of output (i.e. atcompetitors the lowest point of the average cost curve)Economies of scale. Increased output will Monopolists may undertake pricelead to a decrease in average costs of discrimination to raise producer surplus andproduction. These can be passed on reduce consumer surplusto consumers in the form of lowerprices.
  4. 4. Examples of monopolies
  5. 5. The Justice Department and the states believe that Microsoft has used its monopoly in operating system software to protect its dominance and eliminate competitors.The government says that in the long run, consumers will be harmed, because there will be less competition and fewer choices. 
  6. 6.  In March 2004 the European Union brought antitrust legal action against the company, citing it abused its dominance with the Windows OS, resulting in a judgment of €497 million ($613 million) and to produce new versions of Windows XP without Windows Media Player, Windows XP Home Edition N and Windows XP Professional N
  7. 7. Which of the following is acharacteristic of pure monopoly?(A)  one firm, complete market power.(B)  low barriers to entry.(C)  the absence of market power.(D)  firm acts as a price taker.
  8. 8. How many games of Monopolyhave been sold worldwide?A) 350 MillionB) 215 MillionC) 278 MillionD) 179 Million
  9. 9. How long was the longestgame of monopolyA) 70 daysB) One yearC) 38 daysD) 3 days

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