Monopoly Revolution Game

Product Information

The most significant distinction between a PC company and a monopoly is that the monopoly has a downward-sloping demand curve rather than the "perceived" perfectly elastic curve of the PC company. Barriers to exit are market conditions that make it difficult or expensive for a company to end its involvement with a market. Therefore, the whole market is being served by a single company, and for practical purposes, the company is the same as the industry.

A monopoly (from Greek μόνος, mónos, 'single, alone' and πωλεῖν, pōleîn, 'to sell'), as described by Irving Fisher, is a market with the "absence of competition", creating a situation where a specific person or enterprise is the only supplier of a particular thing.Decreasing costs coupled with large initial costs, If for example the industry is large enough to support one company of minimum efficient scale then other companies entering the industry will operate at a size that is less than MES, and so cannot produce at an average cost that is competitive with the dominant company.

Barriers to entry: Competition within the market will determine the firm's future profits, and future profits will determine the entry and exit barriers to the market. If the demand curve shifted the marginal revenue curve would shift as well and a new equilibrium and supply "point" would be established. The absence of substitutes makes the demand for that good relatively inelastic, enabling monopolies to extract positive profits.Advertising: Advertising and brand names with a high degree of consumer loyalty may prove a difficult obstacle to overcome. If there is a single seller in a certain market and there are no close substitutes for the product, then the market structure is that of a "pure monopoly".