University of Florida Microeconomics Barriers to Monopoly Discussion

I’m working on a micro economics discussion question and need a sample draft to help me learn.

Watch the video clip from Forrest Gump.

Consider that Forrest’s good luck of “being in the right place at the right time” allowed him to operate as a monopoly. Typically, the fishing industry is a highly competitive industry where economic profits are rarely made in the long run. However, in a twist of fate, Forrest’s boat is the lone survivor after a hurricane washes ashore and destroys all the other shrimp boats.

Consider the barriers to entry facing potential competitors in Forrest’s monopoly market. The more contestable a market, the closer it will be to a perfectly competitive market, whereas the less contestable a market, the closer it will be to a monopoly.

Describe a firm that you believe is a monopolist. Describe the barriers to entry that exist and discuss if they are contestable or not.