Principles of Microeconomics / Unit 8 MIC 0701 short lesson, about 20 seconds
Monopoly and Market Power
Captions available
The idea
A monopoly is a single seller of a good with no close substitutes. It is a price setter, choosing its price by choosing its output, which is what market power means.
In practice
The town's only water company; the holder of a drug patent.
Where people slip
Monopoly and perfect competition are the two poles. Every real market sits somewhere between them.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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