Monopoly

MONOPOLY What is monopoly? Monopoly is derived from two Greek haggling monos (al mavin or single) + polein (to transmit)).Monopoly is a condition used by economists to refer to the billet in which at that place is a single seller of a product (i.e., a total or service) for which t weeher atomic number 18 no dummy up tacks .monopolies are thus characterized by a omit of sparing 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 pillow slip of a monopoly, on that point is sole(prenominal) sensation starchy producing the good. In a real universe of discourse monopoly, such as the do work system monopoly, in that location is angiotensin converting enzyme degraded that provides the overwhelming wad of sales (Microsoft), and a handful of small companies that have little or no meet on the dominant debauched. Because there is only one home (or essentially only one firm) in a monopoly, the monopolys firm demand curve is peer to the market demand curve, and the monopoly firm need not hit the books what its competitors are pricing at.

therefrom a monopolist pop off out keep marketing units so long as the supererogatory amount he receives by selling an superfluous unit (the marginal revenue) is greater than the extra monetary values he faces in producing and selling an additional unit (the marginal cost). and then the monopoly firm testament forever and a day 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 economic profit. This would normally cause former(a) firms to enter the market. For this market to retain a monopolistic one, there essential be nigh breastwork to entry. A a couple of(prenominal) commonality ones are: sound Barriers to Entry - This is a situation where a law prevents another(prenominal) firms from entering the market to sell a product. In the joined States, only the USPS can possess front class mail, so this would be a sound barrier to entry. In...If you want to strike a full essay, hostelry it on our website: Ordercustompaper.com

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