3.4.5 Monopoly Power (Edexcel A-Level Economics Teaching PowerPoint)

This editable and downloadable powerpoint covers the economics of monopoly power in markets.

Monopoly power in a market basically means that a single firm has such a strong presence that it dominates the entire market. Here are some characteristics of a monopoly power:

• The firm has a very large market share, often over 25-40%.
• There are significant barriers to entry for new firms, like high startup costs or exclusive patents.
• The firm can set prices without worrying about competitors undercutting them.
• Consumers have limited options, and switching to another product isn’t easy or even possible.
• The firm can maintain its dominance over a long period of time.