1. Monopoly

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

5. Economies of scale

6. Government monopolies Patent- license that gives inventor exclusive right to sell product for 20 years

7. Government monopolies Franchise- right to sell a good or service in an exclusive market

8. Government monopolies License- government issued right to operate a business

9. Government monopolies Industrial organizations- an industry government allows to operate with restricted number of firms that act together

10. Price discrimination Dividing customers into groups based on how much they will pay for a good Can be done if firm has market power (ability to change prices and output like a monopolist)

11. Targeted Discounts

12. Manufacturer’s rebates

13. Senior citizen or student discounts

14. Promotions