经济学原理chap15.pptVIP

15 Monopoly While a competitive firm is a price taker, a monopoly firm is a price maker. A firm is considered a monopoly if . . . it is the sole seller of its product. its product does not have close substitutes. WHY MONOPOLIES ARISE The fundamental cause of monopoly is barriers to entry. WHY MONOPOLIES ARISE Barriers to entry have three sources: Ownership of a key resource. The government gives a single firm the exclusive right to produce some good. Costs of production make a single producer more efficient than a large number of producers. Monopoly Resources Although exclusive ownership of a