CHAPTER 12
Pure Monopoly
, Chapter Contents
An Introduction to Pure Monopoly
Barriers to Entry
Monopoly Demand
Output and Price Determination
Economic Effects of Monopoly
Price Discrimination
Regulated Monopoly
, Introduction to Pure Mono
Single seller: a sole producer.
No close substitutes: unique product.
Price maker: control over price and quantity
Blocked entry: strong barriers to entry and h
immediate competitors
Non-price competition: mostly PR but can e
advertising to increase demand.
Pure Monopoly
, Chapter Contents
An Introduction to Pure Monopoly
Barriers to Entry
Monopoly Demand
Output and Price Determination
Economic Effects of Monopoly
Price Discrimination
Regulated Monopoly
, Introduction to Pure Mono
Single seller: a sole producer.
No close substitutes: unique product.
Price maker: control over price and quantity
Blocked entry: strong barriers to entry and h
immediate competitors
Non-price competition: mostly PR but can e
advertising to increase demand.