This Presentation prepare by my friend and class fellow.

1. MONOPOLY
PRESENTED BY:
ZARMINA SHER

2. What is Monopoly?
• The only seller of a product that hasn't
been duplicated.

3. Example
1. Shimano,
2. YKK ( Waikeikei),
3. Nidec,
4. Mabuchi,
5. Debeers diamonds
6. Intel

4. Characteristics
• Single seller,
• Unique product,
• Barriers to entry
• Price maker
• Non-price competition

5. Barriers to Entry
•Economies of scale,
•Legal barriers:
 Patents,
 Copyright,
 License,
 Franchise,
•Network
Externalities:

6. Types
• Natural monopoly,
• Geographic monopoly,
• Technological monopoly,
• Government monopoly,

7. Causes of monopoly
What are
the causes
of
monopoly?

8. Why Monopolies can be beneficial?
Research and Development.
Economies of scale.
International Competitiveness.
Monopolies Successful Firms.
Advantages Of Monopoly

9. Types of profit in monopoly.
• Normal profit
• Supernormal profit
• Sub normal profit

10. Normal profit
AR = AC monopolist will get normal profit

11. Supernormal profit
AR>AC monopolist will get supernormal profit

12. Sub-normal profit
AC > AR monopolist will get Sub- normal profit

13. Price and output under pure monopoly
The monopolists demand curve constraints
on monopoly

14. Price and output under pure monopoly
A change in demand will cause a change in
price, output and profit.

15. Price discrimination
Different customers charged different
charges

16. Conditions on price discrimination
Monopoly power
Elasticity of demands
Separation of the market

17. Examples of price discrimination
• Cinemas and theaters,
• Student discounts,
• Car rental firms,
• Hotels ,

18. Aim of price discrimination
To increase the total revenue.
Extract consumer surplus and turn it
into producer surplus

19. Thanks you