Download Competition vs Monopoly - Professor Stenard + Study = Economic

Competition
vs
Monopoly
A discussion of market characteristics
Facilitator:
Joseph Stenard
Agenda
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The four typical markets
Competition and Monopoly defined
Examples
Comparison Chart
How Households, Firms and
Governments are impacted.
Personal experience:
In Your Lives
Four Typical Markets
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Perfect Competition
Monopolistic Competition
Oligopoly
Monopoly
Definitions
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Monopoly
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Perfect or Pure Competition
“one seller” a market characterized by only
one supplier of a good or service.
is a condition of
the market characterized by many sellers and buyers, who
can easily participate (ease of entry and exit) and where no
firm has the ability to charge above the market rate.
Examples
(as close as we come to examples in the real world)
Monopoly
Thruway Rest Area Starbucks
MLB 103rd World Series Cap
Orange Juice at Disneyworld
Con Edison
Pure Competition
Coffee Beans
White Tee Shirts
Frozen Concentrated Orange Juice
Energy Billing Services, Inc. ?
Properties of Monopoly, Oligopoly,
Monopolistic Competition, and Competition
(Pearson 2004)
How are Households, Firms
and Governments impacted
by Monopoly?
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Profits
Prices
Output
Employment
Taxes
GDP
Efficiency
Personal Experience
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Hurricane Katrina
FEMA vs Allstate
In Your Lives …
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Gas Stations –
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McD’s in Town vs McD’s on the Thruway
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Cell Phone Carriers –
do you want one in town or three?
– How do you benefit from competition?
– Would it be better if AT&T were a monopoly?
Thank You