Consider the following firms Would you regard any of them as

Consider the following firms. Would you regard any of them as a monopoly? Why or why not? Could you use the monopoly model in analyzing the choices of any of them? Explain. a· the best restaurant in town b. your barber or beautician c. your local telephone company d. your campus bookstore e. Microsoft f. Amtrak g the United States Postal Service

Solution

the following firms are monopolies: c,d,e,f,g

option c)

The local telephone service provider has a monopoly in the market due to large investment required in providing telephone connections and line. Aso as the first entrant they enjoy very large network externalities.

option d)

The campus bookstore has a monopoly has thus they have the ability to charge exorbitantly high prices for the textbooks they sell for the students  

option e)

They have dominated the browser market and have maintained a monopoly as commercially viable substitutes existed in the market

option f )

when Amtrak was created in 1971, it was granted a monopoly on operating passenger trains in the United States, and other companies can only offer passenger train service with Amtrak\'s permission and/or cooperation. Similarly, the United States Postal service is the only company authorized to undertake residential non-rush letter delivery.

option g)

That\'s because the post office is a government-protected monopoly; 19th century laws make it illegal for anyone else to deliver letters. It\'s also exempt from state and federal taxes and free from most government regulations. ... Right now, there\'s no competition in the letter-delivery business