Question

1. Look around you at industries/product that you see in the marketplace and identify at least one that you think is a monopoly. (Do NOT use a public utility or other natural monopoly) Do you think that, prices are higher and output lower with a monopolist than with a highly competitive firm?

2. Can you think of instances in which a monopoly has been exposed or opened up to more competition and prices have gone down and quantity of output gone up as a result? Be specific in your answer.

3. Consider a specific product in the garment industry. How close is it to a monopoly for specific items, maybe in specific cities or neighborhoods?

Answer 1