Introduction to Monopoly

The video explains the concept of monopoly, its power, and reasons for its development. It covers the definition of monopoly, the spectrum of market structures, and the concept of monopoly power, which allows firms to influence market prices. The video also discusses why monopolies develop, focusing on barriers to entry, product differentiation, government design, and economies of scale. It highlights how these factors contribute to the formation of monopolies and their ability to control markets.

Discuss the implications of being a price maker in a monopoly.

Why might a monopolist choose to reduce output?

In what ways can government design contribute to the formation of monopolies?

What are economies of scale and how do they affect market competition?