Social Sciences and History / Unit 13 SSH 1236 short lesson, about 20 seconds
Barriers to Entry and Natural Monopoly
Captions available
The idea
A monopoly is one firm producing all a market's output, sustained by barriers to entry: economies of scale that make a natural monopoly; control of a resource; legal restrictions; intellectual property, patents, trademarks, copyrights, trade secrets; and predatory pricing, temporary price cuts to deter entrants.
In practice
A patent: exclusive rights for a limited time.
Where people slip
A legal monopoly: legal prohibition on competition.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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