Monopoly, Duopoly, Oligopoly Notes.pdf - Monopoly A company with a pure monopoly means that a company is the only seller in a market with no other close

Monopoly, Duopoly, Oligopoly Notes.pdf - Monopoly A company...

This preview shows page 1 - 2 out of 2 pages.

Monopoly A company with a pure monopoly means that a company is the only seller in a market with no other close substitutes. For many years, Microsoft Corporation had a monopoly on the software and operating systems that are used in computers. Also, with pure monopolies, there are high barriers to entry, such as significant start-up costs preventing competitors from entering the market. A monopoly refers to when a company and its product offerings dominate one sector or industry. Monopolies can be considered an extreme result of free-market capitalism and are often used to describe an entity that has total or near-total control of a market. Natural monopolies can exist when there are high barriers to entry; a company has a patent on their products or is allowed by governments to provide essential services. Understanding Monopolies Monopolies typically have an unfair advantage over their competition since they are either the only provider of a product or control most of the market share or customers for their product. Although monopolies might differ from industry-to-industry, they tend to share similar characteristics that include: High or no barriers to entry
Image of page 1
Image of page 2

You've reached the end of your free preview.

Want to read both pages?

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask 0 bonus questions You can ask 10 questions (10 expire soon) You can ask 10 questions (will expire )
Answers in as fast as 15 minutes