Closed Economy

As we think of a closed economy, we think of fewer goodsand services. The goods and services we have may not be the best in quality andmay come with higher price tags.  We could think of our market structuresoligopoly and monopoly coming into play here.  Do you remember fromMicroeconomics what oligopolies and monopolies have in common?  Hereare two biggies  

  1. Higher prices
  2. A reduction in customer service

As a consumer, that would not sound good. Right?!  Here is a video that details more about oligopolies andmonopolies to refresh your memory.

 

After you finish the video, let me know how you feel about aclosed economy from a producer perspective as well as from a consumerperspective.

Reference:  Monopoly vs. Oligopoly vs. Competition:Monopolies and Oligopolies Defined, Explained and Compared. (2017, August 4).Retrieved from https://www.youtube.com/watch?v=0Gb4t1L2MH0