Monopoly
Learn about the formation of monopolies and the control of physical resources as well as how profit-maximizing monopolies choose output and price while exploring the inefficiency of monopolies and key concepts in this tutorial.
Introduction to a Monopoly
How Monopolies Form: Barriers to Entry
Natural Monopoly
Control of a Physical Resource
Legal Monopoly
Promoting Innovation
Intimidating Potential Competition
Summing Up Barriers to Entry
Key Concepts and Summary
How a Profit-Maximizing Monopoly Chooses Output and Price
Demand Curves Perceived by a Perfectly Competitive Firm and by a Monopoly
Total Cost and Total Revenue For a Monopolist
Marginal Revenue and Marginal Cost For a Monopolist
Illustrating Monopoly Profits
The Inefficiency of Monopoly
Key Concepts and Summary