Define: monopoly, and describe monopolistic 'barriers to entry' in markets.

Discuss the 'economic inefficiency' of monopolies

Discuss other problems with monopolies

Instructor note to students: Monopolies (and oligopolies) are similar to pure competitors in that they seek to maximize profit, by operating at a level that MR =MC.Monopolies (and oligopolies) use the same reasoning, as it relates to profitability, 'limp along' or 'shutdown'. Monopolies (and oligopolies) are not 'price takers', as are pure competitors, but are 'price makers', and can charge what they want for their products, although raising price results in less demand. Finally, monopolies tend to restrict output and elevate price, and do not serve markets as efficiently as pure competitors.

Perform some outside internet research and provide three (real world) examples of monopolies.