Chapter 15

Monopoly

How did your understanding of monopolies change after reading this chapter?

I now know that a monopoly is a single firm that owns a key resource and that the government plays a role in the governing of these resources. 

What do you see differently now?

I see how our local governments play their role in governing our public utilities such as gas, electric, water and in Eagle even the phone, internet service has a monopoly. Century Link. 

Give an example of a regulated monopoly (a monopoly that exists due to government fiat).  Why did we choose to give this particular firm monopoly status? 

A natural monopoly such as Holy Cross Electric, It is cheaper for Holy Cross Electric to provide electric to our entire area (entire market) at a smaller cost than allowing two firms to provide electric to our area. 

Do you think it was a good decision?  

I do think that it was a good decision. 

Why or why not?

I think that it was a good decision because our population is considerably small comparative to other areas. I think that our costs as consumers may be lower if there were more competition and that the environmental impacts would be more significant. I don't mind paying more for a service that has less impacts on our environment. If two or even three companies were allowed to provide electric it would impact residents and our wildlife.