What Is Monopoly Power?
pieces du monde image by Clément Billet from Fotolia.com jQuery(document).ready(function(){ jQuery(‘#jsArticleStep1 span.image a:first’).attr(‘href’,’http://i.ehow.com/images/a06/3a/nm/do-patents-create-monopoly-power_-1.1-800X800.jpg’); }); Monopoly firms set prices to maximize profits. A monopoly is a market structure in which only one seller produces and sells a good or service. Unlike firms in a competitive market, monopolies are able to determine their own prices in order to maximize their profit. This price-making ability, unique to monopolies, is known as monopoly power. Monopoly power arises due to barriers to entry–conditions that make it difficult for other businesses to enter a market and compete with a monopoly firm. Patents Patents are a type of intellectual property law that provide a set of exclusive rights to an inventor for a limited period in exchange for public disclosure of his invention. The government gives the patent holder the right to exclude others from usin
