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Question - In your town or city try to find a local business that appears to enjoy some degree of monopoly power (it does not have to be a pure monopoly: one unique product and one seller). Briefly describe the nature of this business and explain some of the factors that give it monopoly power. To what extent is the business charging a fair price for what it offers? If you were to buy this business, what practical things would you do to strengthen your monopoly situation?
1. Clearly state the type of business it is, the product or service, and why you think it is a monopoly.
2. Review the factors that contribute to monopoly power and identify which one(s) contribute to this business's monopoly power.
3. Examine the monopoly pricing graph and explain the price being charged by this business, compared to others.
4. Think strategically on what this business could do to strengthen its monopoly position. What are some practical suggestions.
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