ECO 2030. Principles of Economics-Price Theory
Monopoly
Characteristics
- Single firm
- Unique product
- Barriers to entry
- Profit > 0
Barriers to Entry
- Monopoly-owned primary resources
- Licenses (i.e., government created monopolies)
- Economies of scale (e.g., natural monopolies)
Welfare Cost
- Deadweight loss
- Public Policy