1. S&D #31 : Monopoly
TEST & CW DUE TUES!

2. Monopoly 1 Firm / Supplier No close substitutes
VERY high barriers of entry
Control price
*Rare! Anything that is profitable attracts substitutes!
*Generally illegal due to antitrust legislation

3. Types of Legal Monopolies
Natural Monopoly: 1 seller is most efficient due to economies of scale
Cable, electricity, water, etc
Geographic Monopoly: limited by location
Only grocery store in town
Fewer due to internet

4. Other types…
Technological monopoly: new products gain patent become sole owners of the technology
Gov. Monopoly: when gov is sole supplier of product
Public utilities: water, roads, sewer

5. Cell Phone Service Providers!
TMobile

6. S&D #32: Is this a legal?
AT&T is attempting to buy T-Mobile. If AT&T is able to do this, how much of the cell phone service market will it control?
Who has the power to stop the merger?
What are 2 reasons why they should merge?
Who has the worst cell phone service?
What could happen to price if this occurs? What happened in Canada?
What does this article suggest that Obama should do?
Do you think this merger will improve service or price?