Key concepts:
Barriers: factors that make it difficult for a new firm to enter a market. These include: advertising, product differentiation, patents, product bundling, economies of scale, and legal barriers. Sporting example of this is Nike makes it difficult for a new firm to enter the athletic shoe industry because of its advertising and product differentiation- Nike is so broad.
Monopoly- market where one firm has no competing products (NFL)
Pure Competition- firms do not control price of product
Monopoly and Society- monopolists restrict output to control price (M.L.B. restricts number of franchises)
Barriers: factors that make it difficult for a new firm to enter a market. These include: advertising, product differentiation, patents, product bundling, economies of scale, and legal barriers. Sporting example of this is Nike makes it difficult for a new firm to enter the athletic shoe industry because of its advertising and product differentiation- Nike is so broad.
Monopoly- market where one firm has no competing products (NFL)
Pure Competition- firms do not control price of product
Monopoly and Society- monopolists restrict output to control price (M.L.B. restricts number of franchises)
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