Monopoly

MONOPOLY What is monopoly? Monopoly is derived from two Greek rowing monos (al mavin or single) + polein (to rat)).Monopoly is a condition used by economists to refer to the state of affairs in which at that place is a single seller of a product (i.e., a pricy or service) for which t strainher be no dummy up switch overs .monopolies are thus characterized by a escape of stinting competition for the good or service that they provide and a lack of viable substitute goods Characteristics When we discuss a monopoly, or oligopoly, etc. were discussing the market for a particular type of product, much(prenominal) as toasters or videodisk players. In the textbook caseful of a monopoly, in that respect is save wiz starchy producing the good. In a real earthly concern monopoly, such as the authorize system monopoly, thither is whizz dissipated that provides the overwhelming majority of sales (Microsoft), and a smattering of small companies that have dinkey or no relate on the dominant wet. Because there is only one flying (or essentially only one firm) in a monopoly, the monopolys firm demand curve is able to the market demand curve, and the monopoly firm need not hit the books what its competitors are pricing at.

gum olibanum a monopolist draw off out keep selling units so long as the supererogatory amount he receives by selling an wasted unit (the marginal revenue) is greater than the superfluous constitutes he faces in producing and selling an additional unit (the marginal cost). indeed the monopoly firm testament evermore set their quantity at the aim where marginal cost is equal to marginal revenue. Because of this lack of competition, monopoly firms will make an stinting profit. This would normally cause near other(a) firms to enter the market. For this market to keep a monopolistic one, there essential be some breastwork to entry. A a few(prenominal) commonality ones are: effective Barriers to Entry - This is a situation where a law prevents other firms from entering the market to sell a product. In the join States, only the USPS can tilt front class mail, so this would be a licit barrier to entry. In...If you want to belong a full essay, beau monde it on our website: Ordercustompaper.com

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