The video is mainly providing a definition of
monopoly will only produce at quantity when marginal revenue equals
marginal cost. The three main characteristic of a monopoly is basically when
there is only one seller with one special or unique product and have barriers
to entry. Monopoly has the power to change the supply and the demand, which the
video mentioned how economists do not like monopoly mainly because of
that.
Yet one kind of monopoly is created because
that firm is willing to dedicate their great effort into it
and it is good because it will encourage other
firms to become more efficient and try to compete with other firm and make the
economic better as a whole. I do agree with the entire concept of how
economists' view of efficient monopolies. Monopoly can be a good thing when it
comes to the advantage in mass production and manufacturing. If a monopoly
spends its entire surplus in order to maintain the position, then it is neither
worth it nor a good choice to attain a monopoly. Since it ends up creating huge
amount of opportunity cost it is not a good choice.
