Monopoly Chapter 15 Copyright C 2001 by Harcourt, Inc All rights reserved. Requests for permission to make copies of any part of t work should be mailed to Permissions Department, Harcourt College Publishers 6277 Sea Harbor Drive. Orlando Florida 32887-6777
Monopoly Chapter 15 Copyright © 2001 by Harcourt, Inc. All rights reserved. Requests for permission to make copies of any part of the work should be mailed to: Permissions Department, Harcourt College Publishers, 6277 Sea Harbor Drive, Orlando, Florida 32887-6777
Monopoly While a competitive firm is a price taker, a monopoly firm is a price maker H arc Inc items and derived items copyright o 2001 by Harcourt, Inc
Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. Monopoly While a competitive firm is a price taker, a monopoly firm is a price maker
Monopoly OA firm is considered a monopoly if it is the sole seller of its product its product does not have close substitutes H arc Inc. items and derived items c ht o 2001 by Harcourt, Inc
Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. Monopoly uA firm is considered a monopoly if . . . ¼it is the sole seller of its product. ¼its product does not have close substitutes
Why Monopolies arise The fundamental cause of monopoly is barriers to entry. Harcourt, Inc. items and derived items copyright o 2001 by Harcourt, Inc
Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. Why Monopolies Arise The fundamental cause of monopoly is barriers to entry
Why Monopolies Arise Barriers to entry have three sources o Ownership of a key resource o The government gives a single firm the exclusive right to produce some good Costs of production make a single producer more efficient than a large number of producers. H arc Inc items and derived items copyright o 2001 by Harcourt, Inc
Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. Why Monopolies Arise Barriers to entry have three sources: u Ownership of a key resource. u The government gives a single firm the exclusive right to produce some good. u Costs of production make a single producer more efficient than a large number of producers