Monopoly

Monopoly Monopoly is when the market is dominated by a single seller Monopoly is when the market is dominated by a single seller –They can take advantage of the buyers in their market Charge higher prices Charge higher prices Lower quality Lower quality No competition No competition

Monopoly Barriers to entry Barriers to entry –Complete –It is impossible to compete with a monopoly They have complete control over their prices They have complete control over their prices –People are forced to buy it at what they sell it for.

Monopoly The government has made it illegal for monopolies to exist in America’s free market The government has made it illegal for monopolies to exist in America’s free market –Against the law –Businesses must break up if they get too powerful  Microsoft Government is allowed to control some monopolies Government is allowed to control some monopolies –Natural Monopolies

Monopoly Natural Monopolies Natural Monopolies –a market that runs most efficiently when one large firm supplies all of the output –Government will regulate it  Water and energy –Government controls prices and what services they can provide