Monopoly
Defined
•
A
monopoly
is
the
ONLY
firm
in
an
industry
–
No
one
else
sells what
the
monopolist
is producing
–
There
are local
monopolies
•
Some examples are a hardware store, a dry cleaners, and a
drugstore
–
There
are national/regional
monopolies
•
Some examples are diamonds dealers, gas and
electric
companies, and local phone companies
•
A
monopoly
produces
ALL
the
output
in
an
industry
•
There
are
no
close
substitutes
for
the
product
or
service
Copyright
2002 by The McGrawHill Companies, Inc.
All rights reserved.
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