PPT-Monopoly Chapter 7 Section 2

What is a monopoly A monopoly forms when barriers prevent firms from entering a market that has a single supplier with close to no substitute goods Monopoly markets only have one seller whereas perfectly competitive markets have multiple sellers. 1. . Graphs and Tables Copyright . © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.. Antitrust policy. Main purpose. : prevent monopolization, promote competition, and achieve . allocative. MOSCOW 2012 June 8. Simon P. Anderson, University of Virginia, USA. a. nd. Yves Schneider, University of Lucerne Switzerland. Back-drop. Cruise-ship mergers; can they be pro-competitive? (D . Scheffman. 1 Monopoly GB Instructions 5/10/00 10:24 am Page 1  • How Monopolies Form and Survive: Barriers to Entry. • How a Profit-Maximizing Monopoly Chooses Output and Price. • What are the Welfare Effects of a Monopoly. A . pure. monopoly is where . one. Monopoly. Opposite of PC. Occurs when output of entire industry is produced and sold by a single firm referred to as . Monopolist. Characteristics of . Pure Monopoly. Single supplier . – . the firm and the industry are the same.. 5. 24. 3. 11. Why are Entry Barriers. Sometimes High?. Entry Barriers. A few examples of factors that may serve as . ‘. barriers. ’. to free entry into a market:. economies of scale. government licensing. 5.3.3. Learning Outcomes. To understand the meaning of the term ‘monopoly’.. To appreciate what is meant by monopoly power and how this can influence a firm’s behaviour.. To understand the main disadvantages and advantages of a firm having monopoly power. . Slide 2 presents a table that can be printed for each student. For best results, use "landscape" page orientation.. Slides 3 through 10 plots and draws marginal revenue, marginal cost, average total cost, and average revenue (demand), respectively.. Chapter 8. McGraw-Hill/Irwin. Copyright © . 2015 . by . McGraw-Hill Education (Asia). . All rights reserved.. Learning Objectives. Distinguish among three types of imperfectly competitive industries and describe how imperfect competition differs from perfect competition. MARKET STRUCTURE . in which only . ONE . seller sells a product for which there are no close substitutes.. A monopoly is . A PRICE SETTER. , . RESTRICTS THE MARKET . and. IS THE ONLY SELLER.. Monopoly. Monopoly and Antitrust Policy. Copyright © 2017 Pearson Education, Inc. All Rights Reserved. Chapter Outline. 15.1 . Is Any Firm Ever Really a Monopoly?. 15.2 . Where Do Monopolies Come From?. 15.3 . 12.1 Introducing a New Market Structure. 12.2 Sources of Market Power. 12.3 The Monopolist’s Problem. 12.4 Choosing the Optimal Quantity and Price. 12.5 The “Broken” Invisible Hand: . The Cost . The word Monopoly is a combination of two words in which “mono” implies “single” and “poly” means “seller”. Therefore, the market controlled by a sole trader is said to a Monopoly market.. DR. MRIGANKA DE SARKAR. ASSOCIATE PROFESSOR OF ECONOMICS. CONTACT: et_mit@yahoo.co.in. Monopoly: Why?. Natural monopoly (increasing returns to scale), e.g. (parts of) utility companies?. Artificial monopoly.