What is a monopoly?A monopoly is the sole supplier of a productLeast competitive market structureThe monopolist’s are the price settersHigh barriers of entrySloping demand curveFamous board game
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.
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.
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
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.
How many games of Monopolyhave been sold worldwide?A) 350 MillionB) 215 MillionC) 278 MillionD) 179 Million
How long was the longestgame of monopolyA) 70 daysB) One yearC) 38 daysD) 3 days