Topic 15: What is a Monopoly?

 The three kinds of characteristics for monopoly are that first, there’s only one seller that is in the market. Second, there is a barrier to entry for the market, which means it is extremely hard to enter or exit the market freely. Last, No one can produce the similar product to monopoly. When monopoly is making a decision how much to produce and how much it should charge, they will produce at the point where the marginal cost equals marginal revenue and charge the price where the buyer are willing to buy. One of the benefit for the monopoly is that since they are the only firm that is producing the specific product, they can sell their product no matter how much they want, and also same as the price. Monopoly can set their price wherever they want, the only problem is that is the customer willing to buy it or not. In the video, although some of the professors said that monopoly is not that good since they have too much power in the market, but sometimes monopoly can also be a good thing to have. When there’s a monopoly because of the first seller’s effort and work harder. It can encourage other firm to try to join the market, produce new creative product and willing to work harder and more efficiently.