Overview, Understanding, and Definition of Monopoly

What is monopoly? (PPT CONTENTS?)

- The presence of a single seller/producer dominating a specific place/market. (Sir Deri,
2023)
- Has substancial Control over the supply of good or services provided enabling it to
influence prices.
- Monopolies often rsult in high prices.
- Because of certain barriers such as high startup cost, excclusive access to resources,
or legal restrictions, this reinforces the monopolist's position and limits market
competition.
- Since monopolies have almost no competition, they tend to invest heavily in research
and development due to their market power.
Story: (best example to what is monopoly)
Imagine you have a special toy that nobody else has, and you're the only store in
town that sells it. Because everyone has to buy it from you, you get to decide how much
it costs and how many you make – you're the boss. This is called a monopoly.
But here's the tricky part: since no one else is selling that toy, you might not feel
the need to make it better or cheaper. It's like being the only one selling ice cream –
people will buy it even if it's not the best or cheapest because there's no other choice.
Now, imagine if your friends also wanted to sell toys or ice cream. They would try
really hard to make better toys or tastier ice cream to compete with you. This
competition makes everyone work harder to be the best.
In the adult world, companies with a monopoly can sometimes become lazy
because they don't have to try as hard. That's where "investing in research and
development" comes in – it's like trying to make your toy even cooler or your ice cream
even yummier to keep people choosing you.
But, if you're the only one selling, you might not work super hard or spend much
money to make your toy or ice cream better. You might just relax because there's no
competition. This can be a problem because even if you have the best toy or ice cream
now, you might not keep improving it.
So, having just one person or company in charge (a monopoly) can make things
a bit lazy and not as exciting because they don't have to compete with anyone else. It's
like playing a game alone – it might be fun for a bit, but it's more fun when there are lots
of players trying their best to win.
Types of Monopoly: (Natural, Telegraphic, Geographical,
Government) (Include examples for each)

Pros and Cons of Monopoly

Regulations of Monopoly

Conclusion

References:
Lerner, A. (1995). The Concept of Monopoly and the Measurement of Monopoly Power. Essential
Readings in Economics, 55–76. https://doi.org/10.1007/978-1-349-24002-9_4