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Understanding Monopolies in Economics - Revised

Economics
Free Course
A monopoly is a market situation where one producer or a group of producers acting in concert controls the supply of a good or service. This course will give you a better understanding of what a monopoly is. You will learn how they prevent the entry of new producers and influence a market by keeping prices high and restricting output. You will also learn how they show little or no responsiveness to the needs of their customers.
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  • Duration

    1-2 Hours
  • Assessment

    Yes
  • Certification

    Yes
  • Responsive

    Yes
  • Publisher

    Khan Academy

Description

Outcome

Certification

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Description

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.

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Learning Outcomes

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.

Certification

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 official Certification, which is a great way to share your achievement with the world. Your Alison Certification 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 Certification 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 Certification is available to purchase through the Alison Shop. For more information on purchasing Alison Certification, please visit our faqs. If you decide not to purchase your Alison Certification, 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 Certification pricing, please visit our Pricing Page.

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