4/07 - suggests government regulation; Barrier to entry is...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
4/07/08 Monpoly An industry with one seller; perfect barriers to entry Three different types of monopoly +code words 1) Intellectual property monopoly Monopoly created by the government through patent or copyright? Why? To incent Examples: Microsoft, and Network Solutions Inc. – code words 2) Resource Monopolies One company owns all of something examples: DeBeer’s- code word 3) Natural Monopoly- Any industry characterized by extrodinarily high fixed cost eamples: All public utilities such as, electricity, local phone, sewer, water, natural gas, cable tv,
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: suggests government regulation; Barrier to entry is enforced by the government; But natural monopolies are technology dependent. MCI took business from AT&T and invented Cel phones. Remember the god news/bad news proposition about perfect competition? Bad news- stuck with world price Good news- o chance of unsold inventory Well, for a monopoly Good news- Price Maker not Price Taker Bad news- In order to increase sales, the monopolist must lower his price....
View Full Document

This note was uploaded on 04/18/2008 for the course ECO 2023 taught by Professor O'gorman during the Spring '08 term at South Florida Community College.

Ask a homework question - tutors are online