1. Definition
   1. Market with one seller
      1. ex
         1. USPS
         2. Cable TV
            1. Small town
         3. Utilities
            1. Water
            2. Electr
         4. Small Town
            1. Doctor
            2. Gas Station
            3. Movie theatre
            4. But only sometimes
      2. Can be used to describe
         1. Firm
         2. Market
2. Spectrum of monopoly
   1. Pure Monopoly
      1. Produce good with no substitute
   2. Monopoly
      1. Substitute exists but not close
         1. TV
            1. Cable
            2. Dish
            3. Internet
   3. Not Monopoly
      1. Close substitutes exist
         1. Coke
            1. Substi
            2. Pepsi
            3. Soda K
            4. Not Monopoly
3. Why do they exist?
   1. Why dont other firms enter?
      1. What are the barriers to entry?
         1. Economies of Scale
            1. The more they make
            2. The Cheaper the costs are
            3. Example
            4. Small Town Dry Cleaning Company
            5. Graph
            6. Topic
            7. If there is 1 firm
            8. It will be cheaper to consumer to purchase
            9. So other companies dont want to enter
            10. Because
            11. Added producers spreads out consumers
            12. Increasing Price
         2. Legal Barriers
            1. Protection of intelectual property
            2. Creates temporary monopoly
            3. Patents
            4. Scientific Inventions
            5. Lasts for 20 years
            6. After this anyone can sell it
            7. Copyrights
            8. Literary
            9. Musical
            10. Artistic
            11. Last for 70 or more years
            12. but usually 70 years
            13. Government Franchise
            14. Why?
            15. Creates lower costs if only one person sells
            16. EX:
            17. USPS
            18. Small town
            19. Gas stations
            20. Garbage collection
            21. electricity
            22. What happens
            23. Regulate
            24. They own it
            25. Makes business Decisions
            26. What do they regulate?
            27. Prices
            28. Quantity
         3. Network Externalities
            1. Definition
            2. The added benefits for all users of a good or service that arise
            3. Because everyone uses it
            4. Example
            5. Microsoft Windows
            6. You know how to use it
            7. Other people can help you
            8. more software
            9. Facebook
            10. Everyone is on it
4. Constraints
   1. Costs
      1. Each price only certain ammount will buy
   2. Demand
      1. Each demand u can only produce certain ammount
      2. Market Demand
         1. Demand Facing a firm
            1. Because there is only 1 firm
      3. Change in demand
         1. Graph
            1. Topic
5. Price Descrimination
   1. Many firms are able to sell different units at different prices
      1. Example
         1. Student Discounts
         2. Quantity Discounts
            1. Purchase in bulk for less
   2. We are only going to talk about single price monopoly
6. Single Price Monopoly
   1. No Demand constraint
      1. Price and Quantity
         1. Can choose
            1. Price
            2. Quantity
   2. If there is a Demand constraint
      1. You can only choose
         1. Price
         2. Or
         3. Quantity
      2. Example
         1. Table
            1. Topic
            2. Topic
            3. Downward sloping demand
            4. Topic
         2. Monopoly does NOT opperate at
            1. MC=MR
         3. Monopoly DOES operate at
            1. Demand curve Quantity
            2. @ Quanity of MC = MR
7. Monopolization
   1. EX
      1. Perf Comp market
         1. 100 Firms
            1. Bought by a monopolist
            2. All other things =
            3. Monopolist will
            4. Charge High Price
            5. Produce lower quantity
      2. Graph
         1. Topic
8. Profit and Losses
   1. Monopoly Making Profit
      1. Topic
   2. Monopoly suffering loss
      1. Topic
   3. Possible Efficiency gains
      1. Gains from specialization
         1. Effect
            1. MC
            2. Shift Downwards
      2. eliminate replicated costs
         1. Marketing
         2. Bookkeeping
         3. Customer Service
         4. 2 Effects
            1. Market Power
            2. Price goes up
            3. Quantity Goes down
            4. Efficiency Gains
            5. P Down
            6. Quantity Goes up