Understanding Monopoly Economics

Write down five things you know about a monopoly.

Compare your five points with a colleague in the class.

How many different points can you make working as a class?

Can you explain the possible relationship between consumer characteristics (market segments) and elasticities?

Can a perception of quality give a firm monopoly power?

In pairs identify a market in which price discrimination exists.

State and briefly explain two barriers to entry.

What is meant by the term natural monopoly?

With the use of a diagram explain how a monopoly can use its power to maximise profits?

Analyse the profit maximising equilibrium