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whats monopoly?
situation where one business is the dominant seller in the market
whats pure monopoly
basically when theres only one company that has control over the market cuz they sell the item w/o competitors, etc (like water and railways) NOT GOVT RELATED
what is legal monopoly?
when one company also has control over the market (rail /water/postal) but is protected by law and is a provider of service. GOVT RELATED
what is local monopoly?
when one business dominates in a village
what are the features of monopoly?
tree flow of info
unique product
price makers (forces prices to go up by restricting supply)
barriers 2 entry
what are the barriers to entry?
high startup cost
legal: govt signs contract w/ business so its legal to remove rivals
new tech: better products → better research
budget: spending thousands on marketing etc
patent: legal license 2 own all rights to a product
what are new entrants?
when a company sells stuff they never sold before
what is the adv and disadv of monopoly?
adv | disadv |
|---|---|
natural monopoly → EOS and innovation | high price: monopolist gives out limited output 2 force up price |
efficiency as they are the main supplier | restricted choice → one supplier = no options |
lack of innovation and inefficiency |
what is the adv and disadv for consumers?
adv | disadv |
|---|---|
low price, quality, more choice | less options, low quality and high price |
what is the adv and disadv for the economy?
adv | disadv |
|---|---|
growth, gdp rise, efficient, less waste of resource | high cost, less output, less improvement |
Note 
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