Definition, Causes & Pricing Chapter 15

Slides:

Advertisements

Similar presentations

Ch. 7. The factors that make it difficult to enter a market will determine the type of market structure Start-Up Costs- Technology-

Advertisements

Copyright©2004 South-Western 15 Monopoly. Copyright © 2004 South-Western While a competitive firm is a price taker, a monopoly firm is a price maker.

Copyright©2004 South-Western 15 Monopoly. Copyright © 2004 South-Western What’s Important in Chapter 15 Sources of Monopolies (= Price Makers = Market.

Lesson 9-1 Market Structure – Market structures are a way to categorize businesses by the amount of competition they face. – Four basic market structures.

Monopoly A monopoly is the sole supplier of a product with no close substitutes The most important characteristic of a monopolized market is barriers.

Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. Monopoly u A monopoly is the sole seller of its product.  its product does not.

Monopoly While a competitive firm is a price taker, a monopoly firm is a price maker. A firm is considered a monopoly if it is the sole seller of.

Copyright©2004 South-Western 15 Monopoly. Copyright © 2004 South-Western A firm is considered a monopoly if... it is the sole seller of its product. its.

LEQ: HOW DOES COMPETITION EFFECT WHAT IS PRODUCED IN THE MARKETPLACE? KEY TERMS: MONOPOLY MARKET STRUCTURE PERFECT COMPETITION PATENT COPYRIGHT CARTEL.

Monopolies & Regulation Chapter 24 & 26. Monopoly  A firm that produces the entire market supply of a particular good or service. Chapter 24 & 26 2.

Chapter 15 notes Monopolies.

As a result of the laws and forces of supply and demand, unique market structures develop in response. Finally as a response to the market structures.

Copyright©2004 South-Western Monopoly. Copyright © 2004 South-Western While a competitive firm is a price taker, a monopoly firm is a price maker.

Monopoly. Monopoly Monopoly is when the market is dominated by a single seller Monopoly is when the market is dominated by a single seller –They can take.

Monopoly ETP Economics 101. Monopoly  A firm is considered a monopoly if...  it is the sole seller of its product.  its product does not have close.

Monopolistic competition and oligopoly. Monopolistic competition Many firms compete in open market Products are similar but not identical Low barriers.

Chapter 7 Section 1 Perfect Competition

LECTURE #13: MICROECONOMICS CHAPTER 15

Chapter 22 Microeconomics Unit III: The Theory of the Firm.

MONOPOLY. Monopoly Recall characteristics of a perfectly competitive market: –many buyers and sellers –market participants are “price takers” –economic.

Monopolies Definition, Causes & Pricing. Monopoly Market Characteristics One Seller Unique Product—no substitutes Difficult/Impossible to enter or leave.

MARKET STRUCTURE Perfect competition MonopolyOligopoly.

KECSSMs. Murren Outcome : SWBAT compare monopolies, oligopolies and monopolistic competition.

© 2009 Prentice Hall Business Publishing Essentials of Economics Hubbard/O’Brien, 2e. Fernando & Yvonn Quijano Prepared by: Chapter 9 Monopoly and Antitrust.

The Last Word: Ch 9 Guided reading due Friday. Chapter 9.

© 2009 Prentice Hall Business Publishing Essentials of Economics Hubbard/O’Brien, 2e. Fernando & Yvonn Quijano Prepared by: Chapter 9 Monopoly and Antitrust.

Monopolies!!! Are they good for society?. Monopoly Characteristics: 1. Number of Firms = 1 2. Variety of Goods = None 3. Barriers to Entry = Complete.

1.How do you face competition in your daily life? 2.How does competition apply to economics in a positive and a negative way? 1.How do you face competition.

Types of Competition Chapter 7. Perfect Competition Many sellers – Similar Products – dry cleaners – agriculture Easy entry No control over price –

Monopoly. Characteristics of monopoly 1.Single firm (producer, seller) 2.No variety of goods 3.Complete barriers to entry 4.Complete control over price.

Market Structures Chapter 7. MARKET STRUCTURES AND BUSINESS ORGANIZATIONS.

Market Structure is the amount of competition in a particular market. 4 basic market structures in the American economy Perfect Competition Monopolistic.

Copyright©2004 South-Western 15 Monopoly. Copyright © 2004 South-Western Monopoly While a competitive firm is a price taker, a monopoly firm is a price.

Chapters 9 & 10 Competition & Production Competition gives consumers choices and lowers prices. Perfect Competition – market situation in which there are.

Unit #4: Market Structures Market Characteristics.

Monopoly: This is a situation where a single producer (firm) is the sole producer of a good that has no close substitutes.

Jeopardy Q $100 Q $200 Q $300 Q $400 Q $500 Q $100 Q $200 Q $300 Q $400 Q $500 Final Jeopardy Vocab 1Vocab 2Perfection Mono e mono Put em up.

Monopolies Definition, Causes & Pricing Chapter 15.

S&D #31 : Monopoly TEST & CW DUE TUES!. Monopoly 1.1 Firm / Supplier 2.No close substitutes 3.VERY high barriers of entry 4.Control price *Rare! Anything.

Chapter 15 Monopoly!!. Monopoly the monopoly is the price maker, and the competitive firm is the price taker. A monopoly is when it’s product does not.

Monopolies. Monopoly  Characteristics  1. A single producer - only producer of good or service  2. No close substitutes – if consumer does not buy.

Copyright©2004 South-Western 15 Monopoly. Copyright © 2004 South-Western While a competitive firm is a price taker, a monopoly firm is a price maker.

Monopoly 1. Why Monopolies Arise Monopoly –Firm that is the sole seller of a product without close substitutes –Price maker Barriers to entry –Monopoly.

Perfect Competition Chapter 7. Competition How do you face it in your lives? How does it affect the economy? In Boxing, what would make competition perfect?

Copyright©2004 South-Western 3 Monopoly. Copyright © 2004 South-Western While a competitive firm is a price taker, a monopoly firm is a price maker.

What Markets Exist Mr. Wyatt. Perfect Competition It’s the simplest, purest form of the market structures. Lots of firms all producing basically the same.

Chapter 7: Market Structures

Chapter 15 Monopoly.

Conditions of an Oligopoly

Government Regulations & Competition

Monopolistic Competition

Monopoly (Part 1) Chapter 21.

Market Structures SSEMI4c- Identify the basic characteristics of the four market structures.

Competition and Market Structures

Market Structures SSEMI4c- Identify the basic characteristics of the four market structures.

7-1: What is Perfect Competition?

Market Structures: Different Types of Competition

Market Structures and Measuring the Economy

Market Structure.

Topic 4: Competition and Market Structure

Competition and Monopolies

Definition, Causes & Antitrust Laws Chapter 15

Definition, Causes & Pricing Chapter 15

Presentation transcript:

Definition, Causes & Pricing Chapter 15 Monopolies Definition, Causes & Pricing Chapter 15

Monopoly Market Characteristics One Seller Unique Product—no substitutes Difficult/Impossible to enter or leave industry Limited Information Great deal of price control— Price Setters

Barriers to Entry The fundamental cause of monopoly is Barriers to Entry 3 primary sources of Barriers to Entry: 1) Ownership of a key resource 2) Government gives one firm the exclusive right to produce 3) Costs of production make a single producer more efficient

Natural Monopolies natural monopoly- when a single firm can supply a good or service at a lower cost Develop in industries with large economies of scale Examples Utilities: Electricity, Gas & Water Qty Produce ATC

Government Regulation Antitrust laws (1890) - a collection of statutes aimed at curbing monopoly power by: Breaking up companies Preventing mergers Regulating pricing Perfect Together?

Monopoly Power in 2011? Apple Anti-trust law video