Monopoly Flashcards
Describe monopoly
There is a single seller : single firm is the sole producer or supplier
Industry and firm synonymous
There is a unique product: no close subs , consumer who chooses not to buy the monopolised product must do without it
The price maker : controls quantity supplied
Considerable control of price (advantage)
Downward sloping product demand
Blocked entry: no immediate competitors
Economic, tech , legal barriers
Non price comp: mainly PR advertising
Advertise their products attributes
What are regulated monopolies
Government owned or regulated public utilities
What are near-monopolies
A firm has the bulk of sales in a specific market
What are some monopoly demand assumptions
Patents, economies of scale or resource ownership secure the monopolists status
No government regulation
Firm is a single price monopolist
