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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....
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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.
- Spring '08