Monopoly Markets, Pricing, and Policy — Market Power, Deadweight Loss, and Antitrust Explained | Chapter 15 of Principles of Microeconomics
Monopoly Markets, Pricing, and Policy — Market Power, Deadweight Loss, and Antitrust Explained | Chapter 15 of Principles of Microeconomics What happens when a single firm dominates a market and controls prices? Chapter 15 of Principles of Microeconomics explores the unique features of monopoly markets, the sources and implications of market power, and the policy debates over how to regulate these firms. This summary helps you understand why monopolies set prices above marginal cost, what causes deadweight loss, and how governments respond through antitrust laws and regulation. 🎥 Watch the full chapter summary below and subscribe to Last Minute Lecture for more textbook breakdowns and academic study guides! What Is a Monopoly and Where Does Market Power Come From? A monopoly is a firm that is the sole seller of a product with no close substitutes. Monopolies arise from three main sources: Monopoly Resources: A firm owns a key resource needed for product...