A monopoly is destroyed by the introduction of competition. If the monopoly is pricing their goods too high, the competition gives customers the…

Terms in this set (16)

• 3 problems with monopoly. Deadweight loss, lack of innovation, rent-seeking.
• Deadweight loss.
• How does a monopoly cause deadweight loss?
• Lack of innovation.
• Example of lack of innovation.
• Rent-seeking.
• Why hire lobbyists?
• Three types of regulation.

A monopoly may be regulated so that: the monopoly is split into smaller companies (point B) the price the monopoly charges is set equal to marginal cost (point C) the monopoly must charge the price at the point where AC crosses the demand curve (point F)

Natural Monopoly Characteristics

• Naturally Occurring. One of the most important aspects of a natural monopoly is that it is natural.
• Large Fixed Costs. A natural monopoly has extraordinarily large fixed costs.
• Low Marginal Costs.
• Long Economies of Scale.
• Competition is Undesirable.

Monopoly characteristics include profit maximizer, price maker, high barriers to entry, single seller, and price discrimination.

The term monopoly suggests complete control of an entire supply of goods or services in a certain area or market….10 Companies You Didn’t Know Had Near-Monopolies

• Anheuser-Busch InBev.
• YKK Group.
• Luxottica.
• De Beers.
• Tyson Foods.
• Anthem.
• Intel.
• Pearson.

Snapchat

Companies such as Facebook, Google, and Amazon have built natural monopolies for various online services due in large part to first-mover advantages, network effects, and natural economies of scale involved with handling large quantities of data and information.

Instagram. Instagram is a photo and video-sharing social networking platform that was launched in 2010. Through the Instagram app, users can upload, edit, and tag photos and videos. The company remained independent up until it was acquired by Facebook for $1.0 billion in 2012.

Facebook bought Instagram for $1 billion in 2012, a shocking sum at that time for a company with 13 employees, Instagram today has over one billion users and contributes over $20 billion to Facebook’s annual revenue.

Facebook, Facebook Messenger, WhatsApp and Instagram top App Annie’s list, which was published on Monday. The most downloaded app between 2010 and 2019 was Facebook’s main app, followed by the company’s Facebook Messenger app. The four main apps that Zuckerberg oversees boast more than a billion users each.

Systrom

FacebookA

Kevin Systrom’s

Facebook

Yes, Mark Zuckerberg’s Facebook acquired WhatsApp back in 2014 for a whopping $19.3 billion. At the time, this purchase became the largest acquisition of a venture-backed company in history. By August 2014, WhatsApp became a globally-used app, with over 600-million users.