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As you have learned, monopolies have market power because there are barriers to entry

Economics

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As you have learned, monopolies have market power because there are barriers to entry. This enables monopolies to charge a higher price and restrict quantity compared to what would occur in a perfectly competitive market. Around the world and over time, we have seen monopolies occur...DeBeers and diamonds, the railroads, standard oil to name a few. As technology changes and the market place evolves there are new firms that may be exhibiting monopoly-like market power. The European Union has taken the lead on addressing these concerns. At the time of putting together this discussion post together, the United States Federal Trade Commission and Justice Department are investigating some of the big US tech firms due to these concerns.
 

Instructions

With this in mind, please answer the following questions:

• Is Facebook a monopoly? Or a natural monopoly? Why or why not?
• Who benefits and who is harmed if Facebook is a monopoly or natural monopoly?
• What are the ways to address the concerns about Facebook's market power? Does this type of intervention work? Why or why not?
• What do you think should be done, if anything, about the market power Facebook has?
• Please discuss other tech firms that you think may be a monopoly.

1. Post your answer to all of these questions.
2. After posting to the discussion, please be sure to comment on what you like about at least two other students’ posts.