to leverage this economic power into political power—trying to sway Great Britain to formally recognize the

Confederate States of America. (Credit: modification of "cotton!" by ashley/Flickr, CC BY 2.0)

CHAPTER OBJECTIVES

In this chapter, you will learn about:

• How Monopolies form: Barriers to Entry

• How a Profit-Maximizing Monopoly Chooses Output and Price

Introduction to a Monopoly

BRING IT HOME

The Rest is History
Many of the opening case studies have focused on current events. This one steps into the past to observe how

monopoly, or near monopolies, have helped shape history. In spring 1773, the East India Company, a firm that, in its

time, was designated “too big to fail,” was experiencing financial difficulties. To help shore up the failing firm, the
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