Acceptable logotypeECO 2030. Principles of Economics-Price Theory

Monopoly

Characteristics

  1. Single firm
  2. Unique product
  3. Barriers to entry
  4. Profit > 0

Barriers to Entry

  1. Monopoly-owned primary resources
  2. Licenses (i.e., government created monopolies)
  3. Economies of scale (e.g., natural monopolies)

Welfare Cost

  1. Deadweight loss
  2. Public Policy