1. What is a monopoly?

2. How is a monopoly created?

3. What does the demand curve for a monopoly firm look like, and why?

4. Why would someone want to have a monopoly in some business or activity?

5. Under what conditions will a monopolist charge different customers different prices for the same product?

6. How do the predictions of the models of perfect competition and monopoly differ?

7. What types of price discrimination have you experienced (for example, out-of-state versus in-state tuition differences, lower ticket prices at movie theaters during the week, coupons used at a supermarket)?

8. Watch the movie Blood Diamond in class. Discuss the movie in context of monopolies.

9. List examples of the different types of monopolies discussed in section 1(c) from which you have bought products or services.

10. Why is it necessary for the government to become involved in the regulation of some monopolies?

11. How does the board game Monopoly represent some of the characteristics of monopolies illustrated in this chapter?

12. Discuss what has happened when some monopolies were deregulated. Did this deregulation benefit or harm the consumer?