Corrections

Question 1

Monopoly

Answer 1

A market structure where one firm operates or dominates. There’s no competition with high barriers to entry. They are price makers that set price according to the demand curve and consumers have no choice between quality and price as there’s only one firm which is unique with no close subs. Can make supernormal profit

Question 2

Types of monopolies

Answer 2

Pure-Market with only one firm
Monopoly power-1 dominant firm with other smaller firms. Hold at least 25% of the market share
Natural-Arises when a firm can produce at a lower cost than other firms
Artificial-When a firm gains market control through government action or other means