Part A: Is your college bookstore a monopoly?
Is there only one store on your college campus allowed to sell textbooks? Are there economic costs to this monopoly power? Are there economic benefits to this monopoly power? Assess the market for textbooks on your campus using the following key concepts from Chapter 10.
Costs or benefits of monopoly
Barriers to entry
Research and development
Economies of scale
From the list above, which item is the strongest argument against your school allowing monopoly power in the textbook market? Why?
From the list above, which item is the strongest argument in favor of your school allowing monopoly power in the textbook market? Why?
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