1. The Impacts of Monopoly
Unit 7.2

2. Monopolies
Monopolies exist when there is a single supplier for a good, and the barriers to entry prevent other suppliers from entering the market.
While monopolies are generally considered to be bad because they can limit the quantity supplied and can charge whatever they want, there are other kinds of monopolies that economists love.

3. Characteristics of Monopoly
Price Maker
High Barriers to Entry
One Seller
Cartel
Organization of similar producers
Conspire to set prices

4. Types of Monopoly Natural Monopoly Government Monopoly
Patent
Copyright
License
Technological Monopoly
Geographic Monopoly

5. Economies of Scale
An economy of scale is where a business’ costs continue to drop with each product made.
Normally after a certain amount, the cost of making each additional product falls for a time (startup costs are large initially, an the cost to make an individual item small), but eventually the cost rises again.
With an economy of scale, the cost keeps dropping, up to the limit of supplying the entire world market.
This is where a single business can produce enough of a good for everyone, and do it cheaply.