Monopoly

Radical Treatise on Monopoly

When a firm is the only seller or supplier of a good or a service for which there is no close substitute, it is referred to as a monopoly. Broadly speaking, every firm would naturally like to have a monopoly given that monopolies do not face competition. However, monopolists can only succeed in a market situation where the barriers to entry are very high (Brue & McConnell, 2007; Baumo & Blinder, 2008; Miller, 2011; Hubbard & O'Brien, 2008). As was reported in Hubbard & O'Brien (2008), there are four instances where the barriers to entry can be high enough to keep out competing firms:

The entry of more than one firm into a market is blocked by the government;

One firm has a natural monopoly due to the fact that the economies of scale are very large;

The key resources needed to produce a good...
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