PDF-Monopoly is a firm who is the sole seller of itsproduct, and where the

Monopolies arise because of 1 A key resource is owned by the firm For example Debeers and diamonds2 The government gives a firm the exclusiveright to produce a goodExamples include Proposit. MICROECONOMICS. Principles and Analysis. . Frank Cowell . Almost essential . Firm: Demand and Supply. Prerequisites. July 2015. 1. Note: the detail in slides marked “ * ” can only be seen if you run the slideshow. • 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. Private Limited Companies. Co-Operatives. State Owned Companies. Franchises. Forms of Ownership. In this chapter we will look at:. Very Important. *The next slide is the most important slide in the topic and you must fill in and learn this off by heart*. What does monopoly mean?. . “. monos. ” = one “. polein. ” = seller. Not a new phenomenon .  Thales, Aristotle. Necessary conditions. Single seller . Examples: most public utility companies and patented drugs.. 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.. What role do sole proprietorships play in our economy?. What are the advantages of a sole proprietorship?. What are the disadvantages of a sole proprietorship?. A . sole proprietorship. is a business owned and managed by a single individual.. 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.. Pure (or Perfect). Competition. Pure Monopoly. Number of Firms. VERY large number of firms. Only ONE firm. The firm IS the industry. Price making abilities of individual firms. Each firm is so small that changes in its own output do not affect market price, i.e. firms are price takers. Marginal Revenue (MR): . Change. in the firm’s total revenue resulting from a . one unit change. in production.. Marginal Cost (MC): . Change. in the firm’s total cost resulting . from . a . one unit change . Introduction. In economics, a monopoly is defined as a persistent market situation where there is only one provider of a product or service. Monopolies are characterized by a lack of economic competition for the good or service that they provide and a lack of viable substitute goods.. 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 . Market structure – identifies how a market . is made up in terms of:. The number of firms in the industry. The nature of the product produced. The degree of monopoly power each firm has. The degree to which the firm can influence price. Business Name (DBA) ________________________________ ________________ Business Address ________________________________ ________________ ________________________________ ________________ The purpose o