A monopoly is a market structure in which there is a single supplier of a good or service. A firm that is the single supplier of a good or service for which there are no close substitutes is also called a monopoly or a monopolist. For example, if only one company produced and sold computers the company would have a monopoly on computers. When only one firm provides a good or service, there is no competition to force the firm to produce highest quality good or service or to sell it at the lowest possible cost. When a true monopoly exists, consumers cannot even buy substitute goods or services because nobody sells them. Certainly, businesses have the potential to profit greatly if the can become monopolies. However, many economists do not believe that monopolies are good for the economy, and the U.S. Government has outlawed monopolies. In this lesson, you will play the role of a newspaper journalist. You will consider whether or not governments should allow monopolies to exist. You will also think about how the internet has influenced the ability of firms to set themselves up as monopolies.
The publisher of your local newspaper has invited you to serve as the newspaper journalist. As a journalist you are expected to persent your opinions on a variety of issues. For the next issue of your paper, you have decided to present your opinions on monopolies. Should monopolies be illegal in the U.S. economy?
1. The essay must be three paragraphs long each having at least 6 sentences per paragraph.
2. Terms discussed in class must be included.
3. Each person needs to use specific examples from real life situations to back up your main idea of whether you are for or against monopolies.
4. Lastly you need to have your own opinions intertwined with the facts.