Monopoly Markets

• Barriers to entry

  factors that delay or increase the cost of entry
• Barriers to entry - strategic


  any action taken by a firm that is anticompetitive
• barriers to entry - structural

  cost advantage of monopoly firm
• barriers to entry - statutory


  any legal protection provided to incumbent firms
• monopolies

  create an inelastic demand, so firms can increase price by contracting supply with little effect on demand