1. S&D #31 : Monopoly TEST & CW DUE TUES!

2. Monopoly 1.1 Firm / Supplier 2.No close substitutes 3.VERY high barriers of entry 4.Control price *Rare! Anything that is profitable attracts substitutes! *Generally illegal due to antitrust legislation

3. Types of Legal Monopolies 1.Natural Monopoly : 1 seller is most efficient due to economies of scale –Cable, electricity, water, etc 2.Geographic Monopoly : limited by location Only grocery store in town Fewer due to internet

4. Other types… 3.Technological monopoly : new products gain patent become sole owners of the technology 3.Gov. Monopoly: when gov is sole supplier of product Public utilities: water, roads, sewer

5. Cell Phone Service Providers! TMobile

6. S&D #32: Is this a legal? AT&T is attempting to buy T-Mobile. If AT&T is able to do this, how much of the cell phone service market will it control? Who has the power to stop the merger? What are 2 reasons why they should merge? Who has the worst cell phone service? What could happen to price if this occurs? What happened in Canada? What does this article suggest that Obama should do? Do you think this merger will improve service or price?