Monopoly Power

- There can have only one supplier Under monopoly- There are barriers preventing entry of others to this industry

o Lack of close substitutes – Petrol o Other barriers of entry to this market

- No substitutes :- Future of the industry depends on whether there will be substitutes- Technological development can find new substitutes- Legal Barriers to entry- Government grants:

o Franchises- Post office is given exclusive right to letter carrying.o Licenses- Charted accountants, surveyors, Law practice, o Radio and TV channelso Patent or copyrights encouraging inventionso In England, 16 yrs, USA 20 yrs- Microsoft

- Natural barriers to entryo Economies of scale