Principles of Microeconomics / Unit 8 MIC 0729 short lesson, about 20 seconds
Monopoly Power Is Fragile
Captions available
The idea
Monopoly profit invites attack: new technologies, substitutes and entrants chip at every barrier. A market open to entry by close substitutes is contestable, and a lone firm in it prices as if rivals were near.
In practice
Long-distance telephony, cable television and mail delivery each lost their monopolies.
Where people slip
A monopoly today describes a moment; the barrier's durability is the real question for policy.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
Builds on
Unlocks
- Nothing yet depends on this.
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