The task to complete is to create a scenario in which a monopoly might form and analyze that monopoly situation. To do that, please complete the following:
1. Describe your fictitious company and its product that it sells on the market (1 paragraph).
2. Explain the barrier that you have that makes this company a monopoly (1 paragraph). (Tip: look to your text in section 9.1 and read about the barriers that create a monopoly and use one of those that makes sense with your company).
3. Draw and post a monopoly diagram for that company and show that company earning profits.
4. Do you think that the United State's economic system is best described by a perfectly competitive dynamic or best described by a monopoly dynamic where there are forces that exclude entry into markets?
B. You must respond to someone by doing the following (I expect one diagram and 1 to 2 paragraphs):
Choose someone who has yet to be responded to and do the following:
Explain that ...
5. "Though your company is interesting and earning profits it is not efficient because ...and then explain why a monopoly is not efficient." (Think Allocative efficient and Production efficient.)