Google dominates online search options and advertising. Some contend Google is a monopoly. First, consider competition and answer these questions: Is Google protected by a barrier to entry,  and If so, which barrier(s)? Is there a viable substitute for Google? Second, consider whether Google is a monopoly or not. How does Google’s control of the market influence market price and market quantity?

Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter24: Price-searcher Markets With High Entry Barriers
Section: Chapter Questions
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  • Google dominates online search options and advertising. Some contend Google is a monopoly. First, consider competition and answer these questions:
    • Is Google protected by a barrier to entry,  and If so, which barrier(s)?
    • Is there a viable substitute for Google?
  • Second, consider whether Google is a monopoly or not.
    • How does Google’s control of the market influence market price and market quantity?
    • If Google is a monopoly, how would breaking up affect the market price and market quantity?
    • How do we test these hypotheses?
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  • If Google is a monopoly, how would breaking up affect the market price and market quantity?
  • How do we test these hypotheses?
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