Monopoly Types and Economic Concepts

The video tutorial covers four types of monopolies: natural, government, technological, and geographic. It explains how natural monopolies benefit from economies of scale, government monopolies provide public goods, technological monopolies are protected by patents, and geographic monopolies exist due to limited market size. Examples include electric companies, the postal service, Claritin, and the NFL.

What is a natural monopoly?

• A market with no competition

• A market controlled by the government

• A market where production costs are lower with one producer

• A market with multiple producers

Why is it cheaper to have a single electric company in a region?

• Because they use renewable energy

• Because they can spread the cost of infrastructure over many consumers

• Because they have government subsidies

• Because they can charge higher prices

How does economies of scale benefit large companies?

• By limiting market competition

• By reducing the cost per unit as production increases

• By increasing production costs

• By increasing the number of employees

What is a government monopoly?

• A monopoly controlled by a private company

• A monopoly where the government owns and operates the industry

• A monopoly in a small geographic area

• A monopoly based on technological patents

Which of the following is an example of a government monopoly?

• A local gas station

• Microsoft

• Apple Inc.

• The Tennessee Valley Authority

What is a technological monopoly?

• A monopoly with multiple producers

• A monopoly controlled by the government

• A monopoly where a company controls a manufacturing method or invention

• A monopoly based on geographic location

Which of the following had a technological monopoly due to a patent?

• The NFL

• A local gas station

• The Polaroid instant camera

• The postal service

What defines a geographic monopoly?

• A monopoly with multiple producers

• A monopoly where there is only one seller in a specific area

• A monopoly based on technological patents

• A monopoly with government control

Why might a small town have a geographic monopoly?

• Because it is controlled by the government

• Because it has a large population

• Because it has many sellers

• Because it is too small to support more than one provider

Which of the following is an example of a geographic monopoly?

• The postal service

• The NFL

• Microsoft

• Apple Inc.