CHEM 2OD3 Lecture 4: Monopoly Markets.docx
16 Nov 2014
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Document Summary
A monopoly is defined as a market where only one firm offers its products or services to the public, thereby forcing the consumers to purchase the firms goods or services. This type of market has many advantages and disadvantages associated with its structure. One advantage of a monopoly creates a firm that is the sole producer of cannot be outcompeted by other firms. In of the high profits monopolies receive, this invested back into the firm for research purposes or to enhance and develop the. Another advantage of monopolies is the duplicating goods or service, as there is operating in a monopoly. However, monopolies also possess their fair share of disadvantages. One example of this is the lack of consumer sovereignty and abundance of consumer exploitation. Since monopolies are the only firms in the market, they act as price makers and have the ability to charge any price depending on the outputs produced
