1. Business Organizations and Competition
Microeconomics
Business Organizations and Competition

2. I. Goals Explain the benefits of competition in the market.
List and describe the four types of monopolies.
Provide real world examples of each type of monopoly.
Discuss the issue of restricting competition through organizations like cartels.

3. II. Market Structures Benefits Creates efficiency Innovation
Better quality products
Greater incentives

4. III. Monopolies Natural Technological Geographic Government
Cost of production is lower and runs more efficient with one producer
Ex: Power Company
Technological
Exclusive rights to manufacture a product through patents
Ex: Nextel
Geographic
Caused by location, size, or available resources in an area
Ex: Highway gas stations
Government
The government provides a good or service more efficiently, or a market failure occurs
Ex: US Postal Service
Seinfeld:

5. III. Monopolies
Cartels: firms who work together to set price and output levels.
Restricts competition and is illegal.