Monopolies T. Murray & S. Hayes ©. Monopoly One company providing a good or service in an industry Example: Iarnrod Eireann, Aer Rianta, An Post T. Murray.

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Presentation transcript:

Monopolies T. Murray & S. Hayes ©

Monopoly One company providing a good or service in an industry Example: Iarnrod Eireann, Aer Rianta, An Post T. Murray & S. Hayes ©

Aim of a Monopoly Make maximum profit Create “barriers to entry” Control price, quantity sold or both T. Murray & S. Hayes ©

Advantages Monopolists can sell their products at a much lower price than their competition In monopolies, production avoids wasting resources Changes the level of demand in the market don’t affect the monopolies of the market T. Murray & S. Hayes ©

Disadvantages Consumers don’t have a choice about which provider to choose from i.e. Iarnrod Eireann Monopolies are not innovative/creative as they don’t have any competition and hence don’t have to make themselves better T. Murray & S. Hayes ©

How a Monopoly Arises Legislation Mergers & Takeovers Sole owner of factor of production Economies of scale Cartels Product Differentiation T. Murray & S. Hayes ©

How did Google get so big? How does it make money? T. Murray & S. Hayes©

Google Search Engine YouTube Google Maps T. Murray & S. Hayes©

Facebook Post information about yourself The same way you give information to Google … hence an attack on Google’s monopoly T. Murray & S. Hayes©

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