Purchase Solution

Provide examples of a monopoly market.

Not what you're looking for?

Ask Custom Question

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.

Purchase this Solution

Solution Summary

The following posting provides examples of a monopoly market.

Solution Preview

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 ...

Purchase this Solution


Free BrainMass Quizzes
Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.