2.  A monopoly is a MARKET STRUCTURE in which only ONE seller sells a product for which there are no close substitutes.  A monopoly is A PRICE SETTER, RESTRICTS THE MARKET and IS THE ONLY SELLER. http://www.history.com/topics/john- d-rockefeller/videos/the-men-who- built-america-monopoly

3. Government MonopolyTechnological Monopoly Natural MonopolyGeographic Monopoly TYPES OF MONOPOLIES When the costs of production are lowest if only one firm provides output. i.e. Water Companies When a firm controls a manufacturing method, invention or a type of technology. i.e. Apple® Patents When there are no other producers or sellers within a given region. i.e. Buffalo Sabres When the government either owns and runs the business or authorizes only one producer. i.e. the Post Office https://www.youtube.com/watch?v=qB H64zFew6k

4. There are five conditions: 1. MANY BUYERS & SELLERS - no one can dominate 2. STANDARDIZED PRODUCTS - no quality difference 3. INDEPENDENT BUYERS/SELLERS - competition reduces prices

5. 1. 2. 3. 4. WELL INFORMED BUYERS/SELLERS - a weakness* 5. FREEDOM TO ENTER/EXIT THE MARKET - anyone can enter The closest example of perfect competition is FOOD.

6.  Monopolistic competition is different as it: OFFERS SIMILAR BUT NOT STANDARD PRODUCTS.  Four ways monopolistic competition tries to gain business through non-price competition: ◦ Many buyers and sellers ◦ Similar but differentiated products ◦ Limited control of prices ◦ Freedom to enter/exit the market  Uses DIFFERENTIATION to distinguish products.

7. https://www.youtube.com/watch?v=v7 lw_vhxtNc https://www.youtube.com/watch?v=py MTSr8hbow https://www.youtube.com/watch?v=W aGLeDE-Rwg https://www.youtube.com/watch?v=0 GpUhULRIuA http://adage.com/article/global- news/mcdonald-s-air-burger-king- spot-youtube/231565/

8.  An oligopoly is where a few companies control a large portion of a market.  Typically the four largest companies total 40% of a given industry. ◦ Movies, Cereal, Cell Service Providers…

9.  If a seller in a oligopoly lowers their prices, other producers in that industry will LOWER PRICES.  However if a company tries to raise prices, the others won’t in order to GAIN CUSTOMERS.

10.  A CARTEL is an organization of COMPANIES and COUNTRIES that agree to act together to set PRICES and limit PRODUCTION.  OPEC  OPEC altogether contributes 40% of the world’s oil production.

11. Nigeria Venezuela Ecuador Angola Libya Algeria Saudi Arabia Iran Qatar UAE Iraq Kuwait

12. 1. Saudi Arabia 2. Iran 3. United Arab Emirates 4. Iraq 5. Nigeria 6. Kuwait 1. 2. 3. 4. 5. 6. 7. Venezuela 8. Algeria 9. Angola 10. Libya 11. Qatar 12. Ecuador