>> So maybe you thought that
monopoly is just a board game

with funny money, but it turns
out monopoly is a real thing

that economists study.

So how are monopolies different

from perfectly competitive
industries?

The first difference is that
the product price will be higher

for a monopoly than for a
perfectly competitive industry

with the same costs.

We see this all the
time; prices are higher

at concession stands inside
movie theatres or stadiums

because you can't
bring your own food in,

and those concession
stands have a monopoly.

Cable companies are
monopolies in most places,

which is why cable
is so expensive

and many cable companies
have a reputation

for poor customer service.

What casual observers
might not realize is

that monopolies also
produce a different quantity.

A monopoly will produce
less output

than a perfectly
competitive industry

with the same demand and costs.

In fact, restricting output is
how monopolies get consumers

to pay more.

It's basically a movement up
the demand curve to a region

that generates more
revenue for the monopoly.

So relative to a perfectly
competitive industry monopolies

not only charge a higher
price, they also produce less.

And one last thought,
forget about Park Place,

always buy the railroads,
you'll thank me.