Download Monopoly 2

Monopolies
T. Murray & S. Hayes ©
Monopoly

One company providing a good or service
in an industry
 Example: Iarnrod Eireann, Aer Rianta, An
Post
T. Murray & S. Hayes ©
Aim of a Monopoly

Make maximum profit
 Create “barriers to entry”
 Control price, quantity sold or both
T. Murray & S. Hayes ©
Advantages

Monopolists can sell their products at a
much lower price than their competition
 In monopolies, production avoids wasting
resources
 Changes the level of demand in the market
don’t affect the monopolies of the market
T. Murray & S. Hayes ©
Disadvantages
Consumers don’t have a choice about which
provider to choose from i.e. Iarnrod Eireann
 Monopolies are not innovative/creative as
they don’t have any competition and hence
don’t have to make themselves better

T. Murray & S. Hayes ©
How a Monopoly Arises

Legislation
 Mergers & Takeovers
 Sole owner of factor of production
 Economies of scale
 Cartels
 Product Differentiation
T. Murray & S. Hayes ©
How did Google get so big?
How does it make money?
T. Murray & S. Hayes©
Google

Search Engine

YouTube

Google Maps
T. Murray & S. Hayes©
Facebook

Post information about
yourself
 The same way you
give information to
Google
 … hence an attack on
Google’s monopoly
T. Murray & S. Hayes©