Find a recent news article that discusses a monopoly. Based on that article and

Question

Find a recent news article that discusses a monopoly. Based on that article and other information you can find on the industry or firm, identify the characteristics that lead to it being labeled as a monopoly. Consider the following questions in your post:

Does the behavior of firms in the industry correspond to the descriptions provided in your textbook or other resources?

To what extent is there strategic interaction?

If the industry is regulated, what is the justification for regulation?

How does the material covered in this module help you better understand the news article and its implications?

Explanation / Answer

Characteristics

* Single producer and producer faces a downward sloping demand curve

* There us no free entry and exist

* Producer charges price well above cost . This is because he the only supplier of good in market

* Producer consumes all surplus and there il s no consumer surplus and thus there is dead weight loss.

Monopolist produce output much lower than under competition and thus charges higher prices . Due to higher price being charged output produced is less and thus thete is dead weight loss . Some if consumers who value good can't consume ut due to higher price being charged . So there us need to regulate monopoly to avoid dead weight loss in market.

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