The diagram below represents a Monopoly firm in equilibrium - Leaving Cert Economics - Question 1 - 2014

• The price the firm will charge for Q1 (use label P1): This is represented by the vertical line at point P1 intersecting the demand curve at Q1.
• The average cost of producing this output (use label C1): This is indicated by the intersection of the output line at Q1 with the average cost curve, represented by the line C1.

A legal/statutory monopoly refers to a market situation where a single company or entity has exclusive rights granted by the government to supply a particular good or service. This usually involves legal protections that restrict competition and allow the monopolist to operate without rivals.

1. Ownership of a Patent / Copyright: This allows a firm to have exclusive rights to produce a particular product or provide a service, preventing others from entering the market.

2. High Capital Requirements: Some industries require a significant investment to start up, which can deter potential competitors due to the high financial risk involved.

1. Convenient and Reliable Service: Dublin Bus provides a wide range of routes, ensuring that public transportation is readily available and reliable, catering to the daily needs of consumers.

2. Provision of Public Services: As a statutory monopoly, Dublin Bus operates in all areas of Dublin, including those that may be unprofitable for private companies, ensuring that public transport is available to underserved regions.

1. Improved Quality of Service: Increased competition often leads to improvements in service quality as companies strive to attract customers by providing better amenities and convenience.

2. Lower Prices: With more companies entering the market, competition drives prices down, allowing consumers to benefit from more affordable transport options and potentially enhanced consumer choice.