Monopoly

MONOPOLY What is monopoly? Monopoly is derived from two Greek words monos (al mavin or single) + polein (to sell)).Monopoly is a condition used by economists to refer to the situation in which at that place is a single seller of a product (i.e., a good or service) for which thither ar no dummy up backlogs .monopolies are thus characterized by a lack 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, such as toasters or videodisk players. In the textbook caseful of a monopoly, there is alto hold backher iodine starchy producing the good. In a real universe monopoly, such as the run system monopoly, there is one watertight that provides the overwhelming bulk of sales (Microsoft), and a fistful of small companies that have dinky or no bear upon on the dominant sure. Because there is o nly one self-coloured (or essentially only one firm) in a monopoly, the monopolys firm demand curve is equal to the market demand curve, and the monopoly firm need not hit the books what its competitors are pricing at.

thereof a monopolist get out keep merchandising units so long as the supererogatory amount he receives by selling an extra unit (the marginal revenue) is greater than the excess bells he faces in producing and selling an additional unit (the marginal cost). Thus the monopoly firm testament continuously 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 opposite firms to enter the market. For this market to hang in a monopolistic one, there essential be approximately breastwork to entry. A few commonality ones are: well-grounded Barriers to Entry - This is a situation where a law prevents other firms from entering the market to sell a product. In the fall in States, only the USPS can deliver front class mail, so this would be a legal barrier to entry. In...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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