E.3.4+Identify+the+basic+characteristics+of+monopoly,+oligopoly,+and+pure+competition.

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=__Monopoly__=


 * Definition: exists when a single firm is the sole producer of a product for which there are no close substitutes.

Three things to keep note of in a monopoly:
 * there is a single seller
 * no close substitutes for said firm's product
 * there are barriers for entry
 * not a price maker, but a price taker - - - only firm selling given product, can control price

Modern day examples of monopolies: utilities (gas, water, electric), cable, telephone companies

Examples of historical monopolies:





__Andrew Carnegie and Carnegie Steel__

And [|here for a great political cartoon!]

=__[|Oligopoly]__=

Definition: a market situation in which control over the supply of a commodity is held by a small number of producers each of whom is able to influence prices and thus directly affect the position of competitors.

Examples of oligopolies:
 * Mortgage lenders
 * Soft drink companies
 * Auto industry
 * Oil companies

=__Pure Competition__=

Definition: occurs in markets in which no participant has market power.


 * This is actually quite rare. With capitalism, every sector in theory may have the chance to succeed, a "favorite" is inevitable to arise- - - giving them an advantage over their competitors.

__Lesson Plans__

On [|Monopolies]

On [|Oligopolies]

On [|Pure Competition]