ECON101 Lecture : Chapter 13 - Monopoly.docx
![ECON101 Full Course Notes](https://new-docs-thumbs.oneclass.com/doc_thumbnails/list_view/2236007-class-notes-ca-u-of-waterloo-econ-101-lecture3.jpg)
79
ECON101 Full Course Notes
Verified Note
79 documents
Document Summary
That produces a good where there are no close substitute. Where there is one supplier that is protected from competition by a barrier preventing the entry of new firms. Barriers to entry: a constraint that protects a firm from potential competitors, there are three types of barriers to entry: When one firm owns a significant portion of a key resource. Create legal monopoly, which is a market where competition and entry are restricted by the granting of a: public franchise, government license, patent or copyright. A monopoly firm must choose the appropriate price to determine the quantity it sells. There are two types of monopoly price-setting strategies: Single-price monopoly is a firm that has to sell each units for the same price to all its customers. Price discrimination is when a firm sells different units of their good/service at different prices. Many firms price discriminate but not all of them are monopoly firms.