宋利芳《经济学专业英语教程（精编版）（第二版）》Unit 3.pptVIP

Unit 3Text: Monopoly（垄断） 1. Key words2. Why monopolies arise3. Public policy toward monopolies4. Questions barriers to entrymarket powerbusiness licensepatent and copyright lawsnatural monopolyeconomies of scalemonopoly powereconomic well-beingtotal surplusmarginal-cost pricingdead-weight lossaverage-cost pricingregulatory systempublic ownershipspecial-interest groupindustrial organizationmarket failurepolitical failure1. Key words 2.1 Definition and the fundamental cause of Monopoly2.2 Three main sources for barriers to entry2. Why monopolies arise 2.1.1 Definition of Monopoly2.1.2 Fundamental cause of Monopoly2.1 Definition and the fundamental cause of Monopoly A firm is a monopoly if it is the sole seller of its product and if its product does not have close substitutes. 2.1.1 Definition of Monopoly The fundamental cause of monopoly is barriers to entry: A monopoly remains the only seller in its market because other firms cannot enter the market and compete with it. Barriers to entry, in turn, have three main sources: A key resource is owned by a single firm; The government gives a single firm the exclusive right to produce some good or service; The costs of production make a single producer more efficient than a large number of producers.2.1.2 Fundamental cause of Monopoly 2.2.1 Monopoly Resources2.2.2 Government-Created Monopolies2.2.3 Natural Monopolies2.2 Three main sources for barriers to entry The simplest way for a monopoly to arise is for a single firm to own a key resource.Although exclusive ownership of a key resource is a potential cause of monopoly, in practice monopolies rarely arise for this reason. Actual economies are large, and resources are owned by many people. Indeed, because many goods are traded internationally, the natural scope of their markets is often worldwide. There are, therefore, few examples of firms that own a resource for which there are no close substitutes.2.2.1 Monopoly Resources In many cases, monopolies arise bec