This equilibrium will continue in the long run, if barriers continue to exist, demand remains consistent, and the cost is maintained. If the monopoly charges a higher price, then less quantity will be bought, and that equilibrium wonвЂ™t be maximum profit. After finding out where MC meets MR, draw a vertical line to the Demand curve, and the corresponding value on the vertical axis is the price. The Monopoly is a supernormal profit maker andВ using the profit maximization rule MC = MR we canВ find the Quantity and the Price. The Marginal Revenue curve has double the slope of the Average Revenue curve.A monopolist can choose the level of output or the price, not both since it has a negatively sloped demand curve.Average RevenueДЄverage Revenue is Total Revenue/Quantity. Marginal revenue is the revenue earned by selling one more unit. Revenue Curves for a Monopoly Total Revenue The lack of competition may cause the monopoly firm to produce inferior goods and services because they know the goods will sell. Monopolists can sometimesВ use price discrimination, where they charge different prices on the same product for different consumers. The monopolist could set a very high price for the product leading to the exploitation of consumers as they have no option but to buy it from the seller due to the lack of competition in the market. Since the monopolist is making abnormal or supernormalВ profits, the firm can invest that money intoВ research and development.В Customers mayВ get better quality products at reduced prices leading to enhanced consumer surplus and satisfaction.

The seller may pass this benefit downВ to the consumer in terms of a lower price. Since there is aВ single seller in the market, it leads to economies of scale because of large-scale production which lowers theВ cost per unit for the seller. Build your property empire and own it all on the board that goes bump in the night. Buy, sell and scheme your way through the gothic streets of this classic spooky theme. The mists are stirring and the air is alive with the rustle of wings and the distant howling of wolves. In other types of market structures prices are not stable and tend to be elastic as a result of the competition. The Board Night has fallen on the brand new MONOPOLY Transylvania board. This is because there is only one firm involved in the market that sets the prices since there is no competing product. In a monopoly market structure, the prices are pretty stable. If abnormal profits are available in the long run, other firms will enter the competition with the result abnormal profits will be eliminated. This is not possible under perfect competition. A monopolist can be a loss-making or revenue-maximizing too. While a monopolist can maintain supernormal profits in the long run, it doesnвЂ™t necessarily make profits. The monopolist decides the price of the product since it has the market power. There are no close competitors in the market for that product. There are significant barriers to entry set up by the monopolist.В If new firms enter the industry, the monopolist will not haveВ complete control of a firm on the supply.В These barriers implyВ that under a monopoly there is no differВence between a firm and an industry. Ex: When Apple started producing the iPad, it arguably had a monopoly over the tablet market. One firm producing a good without close substitutes.

The following are keyВ features that are typically found in a monopoly market structure: 1. Characteristics of a Monopoly Market Structure For example, many gulf countries have aВ monopoly in crude oil exploration because of abundant naturally occurring oil resources. For example, De Beers is known to have a monopoly in theВ diamond industry.ДЄ Natural Monopoly Market StructureВ is the result of natural advantages like a strategic location or an abundance of mineral resources. However, from a regulatory view, monopoly power exists when a single firm controls 25% or more of a particular market. In a Monopoly Market Structure, there is only one firm prevailing in a particular industry. What is an Efficient Output for Society?.Characteristics of a Monopoly Market Structure.Buy up houses and hotels to improve your properties, and grab a Chance or Community Chest card for an unexpected surprise or penalty. The game board is adorned with a montage of beautiful scenery from the local area, so locals and visitors alike will find plenty to appreciate. Will you find your fortune once you buy the Audubon Center, Bruce Park, or Greenwich Avenue? Visit the exceptional Bruce Museum, buy a luxury car from Miller Motorcars, or spend your day on the Island Beach. Considered by many to be one of AmericaвЂ™s greatest cities, Greenwich has plenty of attractions to entertain the whole family. Whether youвЂ™re looking for somewhere to kick back and relax or want to join a local club and take part in a variety of sports, Greenwich is the place for you.

Monopoly board view