Micro 12 - Imperfect Competition
Micro 12 - Imperfect Competition
There are two different market structures that you need to be aware of:
In the UK we define a monopoly as any firm that has '1-S ,. or more of the market share
The following companies would be classified as monopolies under UK law:
UNDERGROUND
,
.----till -4. ,_
II Microsoft co\TA
Monop 0 ~
, Micro 12- Imperfect Competition
Why do monopolies exist?
Monopolies exist because of barriers to entry. These are obstacles which give the Monopoly a lot of power
and prevent new firms from entering the industry.
Reason for monopoly power Explanation Example
' \ ~' ~ ,o._il.C) l,.A..) ~ cu.
,t\f'M tO ~e t..~
S=>\.J-. -y ra", clU o~
~ 'jocd. er se.f\J\tt .
(\\\OU->~ °' ~(<V' ~
t\OvU..l. lDl.,.) er ~ s
t_\,\()__r\ 0:-~ CcM~e.hto(:S
()J'\d_ ;-½~~ ~ e .
\ower ~r,~ .
Micro 12 - Imperfect Competition
There are two different market structures that you need to be aware of:
In the UK we define a monopoly as any firm that has '1-S ,. or more of the market share
The following companies would be classified as monopolies under UK law:
UNDERGROUND
,
.----till -4. ,_
II Microsoft co\TA
Monop 0 ~
, Micro 12- Imperfect Competition
Why do monopolies exist?
Monopolies exist because of barriers to entry. These are obstacles which give the Monopoly a lot of power
and prevent new firms from entering the industry.
Reason for monopoly power Explanation Example
' \ ~' ~ ,o._il.C) l,.A..) ~ cu.
,t\f'M tO ~e t..~
S=>\.J-. -y ra", clU o~
~ 'jocd. er se.f\J\tt .
(\\\OU->~ °' ~(<V' ~
t\OvU..l. lDl.,.) er ~ s
t_\,\()__r\ 0:-~ CcM~e.hto(:S
()J'\d_ ;-½~~ ~ e .
\ower ~r,~ .
