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    Provide examples of a monopoly market.

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    We study the first two (of four) market structures: perfect competition and monopoly. They are at opposite ends of spectrum as far as market structures go. There are many factors that are used to differentiate these structures including: who establishes the price, the number of firms, barriers to entry, types of products, information, and how the firms maximize profits. First, give at least two examples of a perfectly competitive market and explain what characteristics led you to that decision. Second, give at least two examples of a monopoly market and explain what characteristics led you to that decision.

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    Monopoly market:

    Public transit system in your city

    reasons:

    - only one firm
    - exclusive right to operate (i.e. no one can start another city transit)
    - Clearly for public transit operators, their marginal cost is 0 (if they let one more person on the bus, they do not incur additional costs), but their MR does not equal MC, thus not perfect competitor
    - they are ...

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    The following posting provides examples of a monopoly market.

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