Understanding Monopolies in Economics
Learn more about the economic and financial implications of monopolies existing within any business sector.Publisher: Khan Academy
CertificationView course modules
This course will first introduce you to the basics of a monopoly. You will look into the revenue and cost graphs for a monopoly and study total revenue, marginal revenue, and deadweight loss. You will learn that a monopoly makes a profit equal to total revenue minus total cost. When the total output is less than socially optimal, there is a deadweight loss and when the price is set above marginal cost, the firm earns a positive economic profit.
You will then learn why the slope of the marginal revenue curve for a monopolist is twice the slope of the demand curve. This course will also discuss oligopoly which is a state of limited competition, in which a market is shared by a small number of producers or sellers that dominate the market and are likely to change their prices according to their competitors. You will look into how it differs from a monopoly.
A monopoly exists when one particular business is the only supplier of a commodity or service within any particular sector of the economy, giving them significant market power and the ability to charge higher prices. By taking this economics course you will learn about the characteristics of a monopoly and when they might occur. You will also understand the economic and financial implications of a business having a monopoly in a particular commodity or service sector.Start Course Now
Introduction to Monopolies in Economics
Introduction to Monopolies in Economics - Learning Outcomes
Review of Revenue and Cost Graphs for a Monopoly
Monopolist Optimizing Price (part 1)- Total Revenue
Monopolist Optimizing Price (part 2)- Marginal Revenue
Monopolist Optimizing Price (part 3)- Dead Weight Loss
Optional Calculus Proof to Show that MR has Twice Slope of Demand
Yes Oligopolies and Monopolistic Competition
Monopolistic Competition and Economic Profit
Introduction to Monopolies in Economics - Lesson Summary
Having completed this course, you will be able to:
- Understand what a monopoly is
- Understand how a monopoly can influence a market
- Be able to explain concepts such as total revenue, marginal revenue and dead weight loss
- Compare and contrast monopolies and oligopolies.
All Alison courses are free to enrol, study and complete. To successfully complete this Certificate course and become an Alison Graduate, you need to achieve 80% or higher in each course assessment. Once you have completed this Certificate course, you have the option to acquire an official Certificate, which is a great way to share your achievement with the world. Your Alison Certificate is:
Ideal for sharing with potential employers - include it in your CV, professional social media profiles and job applications
An indication of your commitment to continuously learn, upskill and achieve high results
An incentive for you to continue empowering yourself through lifelong learning
Alison offers 3 types of Certificates for completed Certificate courses:
Digital Certificate - a downloadable Certificate in PDF format, immediately available to you when you complete your purchase
Certificate - a physical version of your officially branded and security-marked Certificate, posted to you with FREE shipping
Framed Certificate - a physical version of your officially branded and security-marked Certificate in a stylish frame, posted to you with FREE shipping
All Certificates are available to purchase through the Alison Shop. For more information on purchasing Alison Certificates, please visit our FAQs. If you decide not to purchase your Alison Certificate, you can still demonstrate your achievement by sharing your Learner Record or Learner Achievement Verification, both of which are accessible from your Dashboard. For more details on our Certificate pricing, please visit our Pricing Page.