The term monopoly is very common in regular conversation and in the news. The theory of monopoly we are learning in this chapter, however, makes a specific argument that may or may not not align with how regular people use the term monopoly.
For this assignment, I would like you to pick a company you have seen referred to as a monopoly (either in the news or in conversation) and argue whether it resembles this theory or not.
1.) state what company you picked and specifically what industry they are competing in. If they compete in multiple, pick one.
2.) list the specific explanation for how a pure monopoly forms in our chapter, and the two types of monopoly. (Use the specific vocab for our chapter or you risk a 0 for Al/plagiarism) What does the theory predict about price and quantity in the market in comparison to perfect competition?
3.) Does this company you picked resemble the theory of monopoly firm in our chapter (the exact theoretical definition of monopoly, not the legal or colloquial one)? Specifically, how does it or does it not resemble the theory as you outlined it in 2.)?