Neill, Dylan, Marah , Ryan, Emily

1. Neill, Dylan, Marah, Ryan, Emily

2. Pure Monopoly • A pure monopolist is the sole supplier in an industry • The monopolist can take the market demand curve as its own demand curve.

3. Number of Firms • There is only one firm in a monopoly which means that the firm has complete control over their business. • In a monopoly the business has the power to set prices, however they can not set prices sky high because no one will buy their product

4. Product Differentiation • Product Differentiation is making a product more appealing by comparing its unique qualities with other competing products. • There is no product differentiation in a pure monopoly, because the producer doesn’t have any competition. The consumers do not have a choice.

5. Advertising • There is no advertising in a pure monopoly. • There is no reason for advertising because the product is the only one of its kind, so it would be a waste of money to advertise. • These products are usually a daily need, such as water.

6. Entering into a Monopoly • It is almost impossible to produce the same product as a monopoly. • Gas, electric, water, cable TV, and local telephone services are all examples of monopolies.

7. 4 Types of Monopolies • Government- a monopoly that the government owns and operates (water)

8. Technology • Technology- a monopoly where you must have control of a specific technology (Patent)

9. Geographical • Geographical- a monopoly based on absence of other competitors in a general area

10. Natural • A business that becomes a monopoly just because it works for everyone and they are the best at what they do.

11. Economies of Scale • A situation where the average cost of production falls as the firm gets larger Economy Scale