Chapter 10 - monopoly

Chapter 10 - monopoly - Chapter 11 Monopoly Monopoly...

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Chapter 11 – Monopoly Monopoly Defined a pure monopoly is an industry in which there is only one supplier of a product for which there are no close substitutes and in which it is and in which it is very difficult or impossible for another firm to coexist. sources of monopoly: barriers to entry and cost advantages o barriers to entry are attributes of a market that make it more difficult or expensive for a new firm to open for business that it was for the firms already present in that market o legal restrictions the government grants special privilege to a single firm or prevents other firms from entering the market. o patents a patent is a privilege granted to an inventor, whether at individual or a firm, that for a specified period of time prohibits anyone else from producing or using that invention without the permission fo the holder of the patent the government gives exclusive production rights to an inventor. as long as it is effect, the firm has a protected position and therefore, a monopoly o control of a scarce resource or input a company that gains control of the source of a rare input. o deliberately erected entry barriers deliberately attempting to make entry to the industry difficult costly lawsuits exorbitant advertising o large sunk cost
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This note was uploaded on 04/07/2008 for the course AREC 202 taught by Professor Dalstead during the Spring '08 term at Colorado State.

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Chapter 10 - monopoly - Chapter 11 Monopoly Monopoly...

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