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Conclusion of Monopoly: Introduction Into Monopolistic Markets

By: Henrique Bertulino

When it comes to economics, free markets tend to exist in four kinds of states: ideal competition, monopolistic competition, oligopoly, and monopoly. All markets all over the world are subject to these four conditions. Of course, there is bound to be overlap and coexistence, but these are the main kinds of competitive markets we see. However, in this article, we will study what a monopoly market is.

Basics of Monopoly

• Single Seller

Unique Product Without Close Substitutes

• Barriers to Entry

Lack of Competition

Perfect competition, monopolistic competition, oligopoly and monopoly, number of sellers, difference between products, freedom of entry, ability to create price, conclusions and recommendations.

A monopoly happens in markets when there is no competition. In markets like this, the pricing power lies in the hands of a few - meaning the people, whether a group or organization, who are the sole suppliers of the product, set the price.

Price takers can never rise to the level of price makers in this sort of economy without the help of externalities. In this article, we show you how to take the market price back.

Getting right to the meat of things, a monopoly occurs when there is only one dealer or seller for a specific product distributing it to the people. The absence of other competitive firms allows the monopolistic company to ask for higher prices than usual. Economists believe that if something does not have any close substitutes and an individual vendor rules said market, that this market is a monopoly, and the vendor in question is a monopolist.

Not even the government is above this. There are many government firms acting as monopoly power, for example, cable companies like Tenaga National and the press.

Characteristics of Monopoly

A monopoly market is a sure-fire way to achieve profit maximization. With that in mind, let us take a closer look at the characteristics that make it so.

Single Seller

Let us take an example to understand this. Suppose Parker was the only seller of pens in a country. Everyone in that country would have to buy pens from them. They literally have no other choice. The market share enjoyed by Parker in this hypothetical scenario is a hundred percent. That is profitability worth waging war for.

When a single seller takes center stage, there is no reason for them to give any importance to marginal revenue or cater to the needs of the consumers. It is economic autocracy as it will be the only price maker and everyone else will be a price taker - unable to affect the market price because whatever they do has no impact.

Let's continue with the example. Why is Parker able to get away with it? Perhaps it is because their pens are so good that people only want their products. This could be true, but to be a monopoly, Parker and only Parker would have to be producing pens. Thus, in this hypothetical, they are meeting a very unique need - something nobody else can meet.

Whether by protecting the secrets of manufacturing or by some other trick, the best will remain the best. Eliminating the competition by creating something only they can do.

You can use examples and analogies like these to illustrate your point. If you have trouble coming up with these ideas, there are websites that write essays for you . But even then, you can preserve your unique insights and simply expand on them. This is the trick to you get the best grade.

Barriers to Entry

A monopoly is the ideal of imperfect competition and this reason is why. Going with the example, Parker would not want to lose its profits. Therefore, they would not allow other pen manufacturers to enter the market. And just like that, you retain market power and remain the price maker.

Going with the previous point, competition would result in lower prices. Monopolists do not want that. That is why they get rid of the competition. This means that the demand curve for a monopoly company is downward sloping, which ultimately shows the average revenue or price for each and every unit of result sold. Marginal income is additional in total revenue from offering one more product.

To move away from monopoly, one simply needs to reverse what makes it. The characteristics we discussed in the previous section are the columns that hold up this structure, Take those away one by one, and it falls apart. How do you do that? Well, let's find out!

Microsoft is not the only company that makes operating systems. Yes, Windows is popular, but so is Linux. Android leads the pack as far as phones and tablets are concerned. This means that, depending on your needs, there are a lot of sellers out there to give you what you need. And with this, the shackles of monopoly begin to fall off.

All of these sellers will set their prices, and the fight between each will help set the market price. Economies that depend on the interplay of sellers to determine prices are considered healthy.

Different producers mean different prices. There will be differences in production, there will be inefficiency, different companies will have different levels of output from each other. There will be no perfect substitutes. Each will have different pros and cons, which means there will be more choices available to every consumer. Product differentiation is a good thing, since it eliminates extremely high prices outright.

In a monopoly, nobody can just decide to start selling something. There are barriers in place to stop them from doing so. These include an exclusive source of information ownership, high start-up cost, and copyrights. The complete opposite of this needs to be achieved in order to throw off monopoly for good. Companies need to be helped and it should be relatively easy to enter the market - provided the company and the product meet the standards of everyone involved in the market.

In monopolistic markets, the monopolist sets the price and that's it. There is no place for price discrimination at all. In a healthy competitive market, the price is set through different companies competing with each other. One company can set the price of their product according to what they see fit, and others are free to do the same. The price thus reached is indicative of the quality of the product. For example, there is a reason why iPhones cost more than Samsung or Sony phones. All of those products have a steady consumer base, so nobody really loses out at all.

The world of macro and microeconomics is as vast as any ocean. There are a thousand things that go into making a market feasible and actually productive. Economies of scale are a very interesting thing. A deadweight loss, differentiated products, and marginal cost are all subjects unto themselves that require proper attention when breathing life into a market structure.

A monopoly, for example, though it is highly profitable thanks to its consumer surplus and supply curve, makes for a very dull economy where everything is the same. Human beings are diverse by nature. Nobody wants one kind of anything. Imagine having to watch only Marvel movies, or drink only Pepsi, or eat only Subway for the rest of your life. It won't be very fun.

And that is why monopoly as a system needs to come to an end. However, don't let all this jargon get you down. We fully understand just how difficult and messy the world of economics can be. If you do not have a clear understanding of everything that goes into it, you will not be able to write a proper paper.

That's where Studybay's homework help comes in! Consider using our economics helpers to refine your knowledge to a sharp point. Then, armed with everything you need to know, you can produce the best paper anyone will have ever seen. We make it easy for students to get the best grades, so contact us today!

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Essay on Monopoly Market | Micro Economics

In this essay we will discuss about monopoly market. After reading this essay you will learn about: 1. Meaning of Monopoly 2. Sources and Types of Monopoly 3. Monopoly Price Determination 4. Degree of Monopoly Power – Its Measure 5. Meaning of Monopoly Price Discrimination 6. Types of Price Discrimination 7. Conditions for Price Discrimination 8. Benefits of Price Discrimination and Other Details.

• Essay on Control and Regulation of Monopoly

Essay # 1. Meaning of Monopoly :

Monopoly is a market situation in which there is only one seller of a product with barriers to entry of others. The product has no close substitutes. In the words of Salvatore, “Monopoly is the form of market organisation in which there is a single fir m selling a commodity for which there are no close substitutes.”

The cross elasticity of demand with every other product is very low. This means that no other firms produce a similar product. Thus, the monopoly firm is itself an industry and the monopolist faces the industry demand curve. The demand curve for his product is, therefore, relatively stable and slopes downward to the right, given the tastes and incomes of his customers.

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It means that more of the product can be sold at a lower price than at a higher price. He is a price-maker who can set the price to his maximum advantage. However, it does not mean that he can set both price and output. He can do either of the two things. His price is determined by his demand curve, once he selects his output level.

Or, once he sets the price for his product, his output is determined by what consumers will take at that price. In any situation, the ultimate aim of the monopolist is to have maximum profits.

Essay # 2. Sources and Types of Monopoly :

Monopoly may arise from a number of sources and is of various types:

First, grant of a patent right to a firm by the government to make, use or sell its own invention.

Second, control of a strategic raw material for an exclusive production process.

Third, a natural monopoly enjoyed by a firm when it supplies the entire market at a lower unit cost due to increasing economies of scale, just as in the supply of electricity, gas, etc.

Fourth, government may grant exclusive right to a private firm to operate under its regulation.

Such privately owned and government regulated monopolies are mostly in public utilities and are called legal monopolies such as in transport, communications, etc.

Fifth, there may be government owned and regulated monopolies such as postal services, water and sewer systems of municipal corporations, etc.

Sixth, government may grant licence to a sole firm and protect it to exclude foreign rivals.

Seventh, the sole manufacturer of a product may adopt a limit pricing policy in order to prevent the entry of new firms.

Essay # 3. Monopoly Price Determination :

We study the determination of monopoly price in the short-run and the long-run.

It’s Assumptions:

The analysis of the determination of the price, output and profits under monopoly is based on the following assumptions:

(1) There is one seller or producer of a homogeneous product.

(2) There are no close substitutes for the product.

(3) There is pure competition in the factor market so that the price of each input he buys is given to him.

(4) The monopolist is a rational being who aims at maximum profit with the minimum of costs.

(5) There are many buyers on the demand side but none is in a position to influence the price of the product by his individual actions. Thus the price of the product is given for the consumer.

(6) The monopolist does not charge discriminating price. He treats all consumers alike and charges a uniform price for his product.

(7) The monopoly price is uncontrolled. There are no restrictions on the power of the monopolist.

(8) There is no threat of entry of other firms.

Price and Output Determination :

Given these assumptions, the price, output and profits under monopoly are determined by the forces of demand and supply. The monopolist has complete control over the supply of the product. He is also a price- maker who can set the price to his maximum advantage. But he cannot fix the price and output simultaneously.

Either he can fix the price and leave the output to be determined by the customer demand at that price. Or, he can fix the output to be produced and leave the price to be determined by the consumer demand for his product. Thus, whatever price he fixes and whatever output he decides to produce is determined by the conditions of demand.

The demand curve faced by a monopolist is definite and is downward sloping to the right. It is his average revenue curve (AR). Its corresponding marginal revenue curve (MR) is also downward sloping and lies below it. But the manner and extent to which the monopolist will be able to influence price or output will depend upon the elasticity of demand for his product.

If the demand for his product is highly elastic, he can sell more by a small reduction in price. If, on the other hand, the demand is less elastic, the tendency will be to raise the price and profit more by selling less.

Given the demand for his product, the monopolist can select the most profitable output against this demand. His cost of production may be rising, falling or constant. Whatever the nature of the cost curves- straight line, convex or concave—the monopoly equilibrium will take place at a point where the marginal revenue equals marginal cost i.e. ƏR /ƏQ = ƏC /ƏQ.

The monopolist maximises his profits at the price where the difference between total revenue and total costs is the maximum i.e. Max π = TR-TC.

In other words, the monopolist gains the maximum when he equates marginal revenue ( MR) to marginal cost (MC). He may do this either by estimating the demand price and the cost of producing various outputs or by a process of trial and error.

Geometrically speaking, the point of monopoly equilibrium is one where the MC curve cuts the MR curve from below or from the left, and a perpendicular from it to the AR curve determines price.

It implies that

Price > MC = MR. In fact, monopoly price = MC –E/E-1.

AR (Price) = MR MC –E/E-1 and MC = MR

Monopoly Price = MC E/E-1

Thus monopoly price is a function of the MC and the elasticity of demand. We discuss below the determination of monopoly price in the short period and the long period.

(A) Short-Run Monopoly Equilibrium :

In the short-run, the monopoly firm attains equilibrium when its profits are maximised or losses are minimised. Like the competitive equilibrium, this analysis can also he discussed in terms of the total revenue-total cost approach and the marginal revenue-cost approach.

Total Revenue-Cost Approach:

In Figure 1. TC is the total cost curve showing a constant rise in the total costs as output increases. TR is the total revenue curve which goes on rising to begin with, then flattens and later on slopes downward, showing fall in total receipts after a given point.

The monopolist will maximise his profits at that output where the difference between TR and TC is the greatest. This will be the level at which the slopes of TR and TC curves equal. Accordingly, P is the equilibrium point as determined by the tangents at points P and T on the TR and TC curves respectively.

A and В are the break-even points where TR = TC. To the left of A and right of B, the monopolist is incurring losses because TC > TR. Thus his maximum profits will be PT and he will sell OM output at MP Price.

Marginal Revenue-Marginal Cost Approach:

In the short-run, the monopolist can change the price as well as the quantity of the product. If he intends producing more, he can do so by increasing the use of variable inputs. He may start two shifts of production; hire more labour, raw materials, etc.

But he cannot change his fixed plant and equipment. On the other hand, if he wants to restrict his output, he may dispense with certain workers, work for less hours and use less of the variable factors.

In any case, his price cannot be below the average variable costs. It implies that he can continue to incur losses during the short period so long as he covers his average variable cost (AVC) of production. Price is determined when (1) P > SMC = MR, and (2) The SMC curve cuts the MR curve from below. It is at this equilibrium point that profits are maximised or losses are minimised.

Super-normal Profits:

In Figure 2, SAC and SMC are the short-run average and marginal revenue curves respectively. AVC is the average variable cost curve. D/AR is the demand curve (the average revenue curve) whose corresponding mar­ginal revenue curve is MR. The short-run monopoly equilibrium is at point E where the SMC curve cuts the MR curve from below.

The monopolist sells OM output at MP (=OB) price. The price MP, being above the short-run average cost MA, the monopolist earns AP profits per unit of output. Thus total monopoly profits are AP × CA= CAPB.

Normal Profits:

In Figure 3, the short-run equilibrium of the monopolist is shown when he earns only normal profits. The equality of SMC curve and MR curve at point E determines OM output which is sold at MP Price. Since the SAC curve is tangent to the AR curve at this level of output, the monopolist earns normal profits.

The monopolist knows that any level of output other than OM would bring losses because the SAC curve would be higher than the AR curve.

Minimum Losses:

Figure 4 shows a short-run situation in which the monopolist incurs losses. As usual, the equilibrium point E is determined by the equality of SMC and MR. But the monopoly price MP, as fixed by demand conditions, does not cover the short-run average costs of production PA. It just covers the average variable costs MP, represented by the tangency of the demand curve D and the AVC curve at point P.

PA is thus per unit loss which the monopolist incurs. Total losses are equal to BP x PA = BPAC. In this figure, P is the shut­down point for this firm. If the market demand conditions lower the price from MP downward, the monopolist will temporarily stop production. His firm will close down.

(B) Long-Run Monopoly Equilibrium:

In the long-run, the monopolist can remain in business only if he is able to earn super-normal profits. If he was incurring losses in the short-run, he has enough time to make changes in his existing plant in the long- run so as to maximise his profits. With entry of new firms ruled out, he can install a plant which gives him maximum profits.

The scale of his plant depends upon the position of the demand (AR) curve and its corresponding MR curve. The most profitable level of output is at the point where the LMC curve intersects the MR curve from below and the SMC curve passes through this point. Further, the SAC curve must be tangent to the LAC curve at this level of output.

Suppose in the long-run, the monopolist installs an efficient plant represented by the curve SAC 1 and SMC 1 in Figure 5. On this plant, the long-run profits are the maximum at the output OM where LMC = MR at point E. Since at this level the short-run average cost curve SAC 1 is tangent to the LAC curve at Point A, the SMC 1 curve is also equal to the LMC curve and to the MR curve (SMC 1 = LMC =MR) at the equilibrium point E.

Thus when the monopoly firm is in long-run equilibrium, it is also in short- run equilibrium. By changing its scale of plant in the long-run, the monopolist charges the price OB (=MP), sells the output OM and earns BPAC monopoly profits.

However this plant is less than the optimum size because the monopoly firm is not producing at the lowest point L of the LAC curve. It has some excess capacity. It is not in a position to take full advantage of the economies of scale due to the small size of the market for his product.

Essay # 4. Degree of Monopoly Power – Its Measure:

In monopoly, the monopolist is able to earn monopoly profit by his superior bargaining power. He is in a better position to exploit the market to his advantage. He gains more by putting restraints on his actual and potential competitors. Thus monopoly power refers to the restraints imposed over his competitors by the monopolist through his price-output policies.

Measurement of Monopoly Power:

There are two important methods of monopoly power:

First, the difference between marginal cost and price. Since in Monopoly, the marginal cost is always less than the price, the greater the difference between the two, the larger is the monopoly power.

Second, the difference between monopoly super-normal profits and competitive super-normal profits is also considered as the measure of monopoly power. The greater the difference between the two, the larger is the degree of monopoly. However, economists have given other measures of monopoly power. We discuss a few. But no method is regarded as perfect.

1. Lerner’s Measure:

One of the earliest methods to measure monopoly power is expressed by Prof. Abba P. Lerner in terms of the bargaining strength. The difference between price and marginal cost is the measure of the degree of monopoly power.

If P is price and MC the marginal cost, the formula for measuring the degree of monopoly power is P-MC/P. A seller’s monopoly power depends upon his ability to sell his product at a price much above his marginal cost.

The larger the gap between price and marginal cost, the greater is the monopoly power. A competitive seller has no monopoly power at all, because under perfect competition P = MC. In all cases, the above formula will give zero. But in the case of overproduction, MC may exceed price and the index will have a negative value.

Moreover, if the seller is a monopolist, the difference between price and marginal cost is always there. The index of monopoly power will, therefore, vary between zero and unity. For instance, if P is Rs.4 and MC Rs.2 the index of monopoly power will be 1/2 i.e. (4-2)/4.

It is, however, not easy for a seller to raise the price of his product in order to increase his bargaining price. The attempt to raise profits by a price rise may be neutralized by the reduction in his sales resulting from raising the price. Therefore, the degree of monopoly power is measured in terms of the elasticity of demand and the formula is:

Degree of monopoly power (DMP) = (P – MC)/ P

For profit maximisation, MC = MR, and the formula becomes

DMP= or the inverse of the elasticity of demand,

P- MR= (P – MR)/ P

By substituting MR = P E-1/E in the above equation,

DMP= (P-P E-1/E)/P = P- PE +P/E/P = PE- PE+P/EP = 1/E

Or the inverse of the elasticity of demand, P/P-MR

Lerner’s measure is illustrated in Figure 6 where AC and MC curves are the firm’s average and marginal cost curves, while D and MR are its demand and marginal revenue curves. The monopolist firm maximizes its profit at point E where MC = MR.

It produces OM output and sells it at MP Price. The ratio PEIPM is termed as the degree of monopoly power. The degree of monopoly power is the reciprocal of the P-MR elasticity of demand i.e., P-MR/P

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Conclusion of Market Structure - What is a Monopoly?

Published Date: 23 Mar 2015 Last Modified: 23 May 2017

Disclaimer: This essay has been written and submitted by students and is not an example of our work. Please click this link to view samples of our professional work witten by our professional essay writers . Any opinions, findings, conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of EssayCompany.

Keywords: perfect competition, monopolistic competition, oligopoly, monopoly

Introduction

Monopoly occurs when there is no competition and therefore the supplier has a very high degree of pricing power. In addition, monopoly also is a situation in which a single organization or group owns all or nearly all of the market for a given type of product or service. Besides, it also contains several characteristic, example and diagram in monopoly market.

In addition, there are four common types in competition free market which is perfect competition, monopolistic competition, oligopoly and monopoly. There are different meaning, features and examples in these four common types in a market.

A monopoly is when there are many buyers but there is only one seller that controls the supply of a product and its price. This allows the supplier to charge higher prices than if there was competition. Burkett, John P. (n.d, pg345) states that if a product has no close substitutes and a single seller, economists say that its market is a monopoly and its seller is a monopolist. Monopoly is like a market structure in which one company sells a special goods into which entry is blocked in which the single company has considerable control over the product price. So, consumers have no choice to buy their product and service. There is few government agencies keep the formation of monopoly under control, especially in markets such as cable companies like Tenaga National and media.

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Characteristics of Monopoly

Monopoly market structure is selling the product which has no close substitutes with others. The characteristics of a monopoly market are:

Single Seller

There is only one seller in a monopoly market. The seller controls the supply of a product and decides the product price. Besides, a monopolistic also control over the entire market because there is a single particular services in the market obtain a lot of purchasers

Unique Product without close substitutes

In a monopoly market, their product and service are special and unique. They have their own idea and design for the product and service. All the units of a product are similar and there are no alternative to that commodity in the firm. The firm are controlling over the market by offering a product that is not same with other. The firm may use specialized information like trademark and copyright in order to establish legal authority over the production of some goods and services.

Barriers to Entry

Normally, monopoly situation in a market can continue only when other company does not enter into the industry. In a monopoly market, they have no others competitor because barriers of enter are very strong. It would be prevent and discourage to enter this market to be a competitor. Therefore, a monopoly presents barriers to prevent potential competitors from entering the market. The barriers may even be legal in that the firm to take benefit of copyrights, tariffs and trade restrictions and others. If want continue the monopoly market should not be no entry for new firms.

Profit in the Long Run

The seller can earn more profit as he can if there is no any fear of competitive seller in the monopoly market. In other hand, if the seller gets unusual profits in the long term, he cannot be simply quit from this market. However, this is impossible under perfect competition. If unusual profits are available to a competitive company, other companies will enter the competition with the result unusual gains will be eliminated.

Lack of Competition

When the market need to serve like a monopoly, the lack of business competition are the best benefit for the monopolistic. They also need to barriers to entry for ensure other firms not easily come in the market running their business. For example, cable companies are the monopoly in market. They control all the supply of the product and a lot of buyers.

Since there is only one producer in monopoly, the company's demand curve represents the industry demand curve. The demand curve for a monopoly firm is downward sloping, which shows the average revenue or price for every unit of output sold. Marginal revenue is additional in total revenue from selling one more unit. Total revenue is the prices multiply with quantities. The graph shows a linear demand curve and MR curve.

For example, if the quantity ranges from 0 to 5 units of cable TV, the MR is positive (MR>0) and demand is elastic where price decrease will increase the TR. At the quantity of 5 units of cable TV would lead to negative MR (MR<0) and this range the demand is inelastic because drop in price would decrease the TR. TR is maximized when MR is zero.

Conclusion of Monopoly

In conclusion, monopoly is only a seller but many buyers in a market. A monopolist is selling unique product and the design and idea create by his own. The seller is 'price maker', he decided to set the product price and maximize the profit. Therefore, monopoly is an absence of competition, which often results in high prices. Besides, a monopolistic also needs to control some company no entry in monopoly market because some firms are strong to take advantages in your company.

Perfect Competition, Monopolistic Competition, Oligopoly and Monopoly

There are several market structures in which firms can operate. The type of structure influences the firm's behavior, whether it is efficient, and the level of profits it can generate. Perfect competition means that has a market situation in which a lot of sellers or producers producing and selling homogeneous product. Monopolistic competition is which there are many firms selling differentiate products in a market. In addition, oligopoly is market structure in which there are a few independent companies and monopoly is the only one seller in the market and control the entire market.

Number of sellers

Perfect competition exists when there are a lot of sellers in a market and do not have large seller to determine the product price and monopolistic competition is when a major number of sellers produce goods that are very similar but are perceived by purchaser are different. In an oligopoly market, there have at least two and more firms controlling the market while monopoly means that there are many buyers but only one seller controls the supply of a products and its price. The best example of perfect competition is farming and fast food burger companies like MCD are the example of monopolistic competition. Also, example of oligopoly is coke which has many types like Coca Cola, Pepsi and Cola Turka while the example of monopoly is Microsoft.

Difference between products

This is homogeneous product in perfect competition. The products offered for sale are perfect substitutes of one another and also must identical in every respect to all sellers. Under monopolistic competition, product differentiation allows firms to charge a high price and collect some profits. In oligopoly that are provided homogeneous or differentiated products while monopoly market are no close substitutes, because the monopolistic create and design the product by their own. For instance, farming such as organic vegetables and some tropical fruits are the example of perfect competition and KFC and Burger King are the example of monopolistic competition. Also, automobiles, banking and petroleum are the example of oligopoly. Cable companies such as media and electricity like Tenaga Nasional or Pos Laju are the example of monopoly.

Freedom of entry

Generally, there is free entry and exit in perfect competition and monopolistic competition. If have any barriers to entry for new firms and prices are decided by supply and needs. Companies in an oligopolistic market obtain and retain market control through barriers to entry. The noted of entry barriers are exclusive resource ownership, other government restrictions, high start-up cost and copyrights. Besides, monopoly is not allow other firms to entry and run their business in the market. For example, if a firm wants to sell tropical fruit in this land, it must have resources, labor and money to run the business. If the business was earned less profit, the seller can exit the market without any restrictions. The example of monopolistic competition is if a company wants to entry aluminum industry, the firm must find different quality, brand name and design of the aluminum to run the business in this market.

Ability to set price

Perfect competition is not able to set price because the price is depending on the market price. Therefore, supplier and buyer are not allowed to change the price. For example, the price of the mineral water is set by supply and demand is $1 per bottle. So, all sellers and buyers already know the product price and cannot change it. In addition, under monopolistic competition, sellers can change the price if they want. This is because there are similar product but different brands name, quality and design of the product. Therefore, seller can change the price of the product without influence the entire market. For example, chicken rice in normal restaurant is only sell $3.50 per plate but in Chicken Rice Shop Restaurant is selling $8.90 per plate. This is the different between the quality and design of the product. Under oligopoly, it is a market most depend on strategic. When one seller lowers the price of the product, another business of oligopoly also will follow to lower the price of the product. However, because there are rival firms, oligopolies must attention at how they react to its change in price, output, product or advertising. For example, if F&N Soft Drink Company increases the price of the soft drinks, other soft drink companies will also follow to increase the price. Also, monopoly able to set the price of the product because monopolistic is a price-maker. This is because there is only one seller in the market and decides the price of the product. Therefore, consumers have no choice and need to use their product and service. For instance, Telekom Malaysia Bhd â„¢ is increase the talking time of home telephone to home telephone to RM0.50 sen per minute, so all users need to accept and follow the price by government because monopolistic is price maker.

Conclusion of Perfect Competition, Monopolistic Competition, Oligopoly and Monopoly

In conclusion, the concept of market structure is central to both economics and marketing. Besides, there are difference feature in these four common types of market structure which is perfect competition, monopolistic competition, oligopoly and monopoly. Perfect Competition which is many sellers of a standardized product, Monopolistic Competition which has many sellers of a differentiated product, Oligopoly has few sellers of a standardized or a differentiated product, and Monopoly which is a single seller of a product for which there is no close substitute.

These four market structures each represent an abstract (generic) characterization of a type of real market. Market structure is important in that it affects market outcomes through its impact on the motivations, opportunities and decisions of economic actors participating in the market.

Conclusions and Recommendations

In conclusion, after complete these two tasks, I gained extra knowledge about the detail of monopoly and it's characteristic. In a monopoly market only has one seller running the business in entire market. Therefore, there is no competition with others. A monopolistic also needs to ensure no barriers to entry of other companies.

In addition, free market structure is the competition that comes from allowing anyone who needs to sell a particular service or item to do so. Under market structure there have four common types which are perfect competition, monopolistic competition, oligopoly and monopoly. There are different market with different characteristics and examples.

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Regulation of monopoly

The government may wish to regulate monopolies to protect the interests of consumers. For example, monopolies have the market power to set prices higher than in competitive markets. The government can regulate monopolies through:

• Price capping – limiting price increases
• Regulation of mergers
• Breaking up monopolies
• Investigations into cartels and unfair practises
• Nationalisation – government ownership.

Why the Government regulates monopolies

• Prevent excess prices . Without government regulation, monopolies could put prices above the competitive equilibrium. This would lead to allocative inefficiency and a decline in consumer welfare.
• Quality of service . If a firm has a monopoly over the provision of a particular service, it may have little incentive to offer a good quality service. Government regulation can ensure the firm meets minimum standards of service.
• Monopsony power . A firm with monopoly selling power may also be in a position to exploit monopsony buying power. For example, supermarkets may use their dominant market position to squeeze profit margins of farmers.
• Promote competition . In some industries, it is possible to encourage competition, and therefore there will be less need for government regulation.
• Natural Monopolies . Some industries are natural monopolies – due to high economies of scale, the most efficient number of firms is one. Therefore, we cannot encourage competition, and it is essential to regulate the firm to prevent the abuse of monopoly power.

How the government regulate monopolies

1. Price capping by regulators RPI-X

For many newly privatised industries, such as water, electricity and gas, the government created regulatory bodies such as:

• OFGEM – gas and electricity markets
• OFWAT – tap water.
• ORR – Office of rail regulator.

Amongst their functions, they are able to limit price increases. They can do this with a formula RPI-X

• X is the amount by which they have to cut prices by in real terms.
• If inflation is 3% and X= 1%
• Then firms can increase actual nominal prices by 3-1 = 2%

If the regulator thinks a firm can make efficiency savings and is charging too much to consumers, it can set a high level of X. In the early years of telecom regulation, the level of X was quite high because efficiency savings enabled big price cuts.

RPI+/- K – for water industry

In water, the price cap system is RPI -/+ K.

K is the amount of investment that the water firm needs to implement. Thus, if water companies need to invest in better water pipes, they will be able to increase prices to finance this investment.

Advantages of RPI-X Regulation

• The regulator can set price increases depending on the state of the industry and potential efficiency savings.
• If a firm cut costs by more than X, they can increase their profits. Arguably there is an incentive to cut costs.
• Surrogate competition. In the absence of competition, RPI-X is a way to increase competition and prevent the abuse of monopoly power.

Disadvantages of RPI-X Regulation

• It is costly and difficult to decide what the level of X should be.
• There is a danger of regulatory capture , where regulators become too soft on the firm and allow them to increase prices and make supernormal profits.
• However, firms may argue regulators are too strict and don’t allow them to make enough profit for investment.
• If a firm becomes very efficient, it may be penalised by having higher levels of X, so it can’t keep its efficiency saving.

2. Regulation of quality of service

Regulators can examine the quality of the service provided by the monopoly. For example, the rail regulator examines the safety record of rail firms to ensure that they don’t cut corners.

In gas and electricity markets, regulators will make sure that old people are treated with concern, e.g. not allow a monopoly to cut off gas supplies in winter.

3. Merger policy

The government has a policy to investigate mergers which could create monopoly power. If a new merger creates a firm with more than 25% of market share, it is automatically referred to the Competition and Markets Authority (CMA). The CMA can decide to allow or block the merger depending on whether it believes it is in the public interest.

• For example, CMA blocked the merger between Sainsbury’s and Asda as being against the public interest.

4. Breaking up a monopoly

In certain cases, the government may decide a monopoly needs to be broken up because the firm has become too powerful. This rarely occurs. For example, the US looked into breaking up Microsoft, but in the end, the action was dropped. This tends to be seen as an extreme step, and there is no guarantee the new firms won’t collude.

5. Yardstick or ‘Rate of Return’ Regulation

This is a different way of regulating monopolies to the RPI-X price capping. Rate of return regulation looks at the size of the firm and evaluates what would make a reasonable level of profit from the capital base. If the firm is making too much profit compared to their relative size, the regulator may enforce price cuts or take one-off tax.

A disadvantage of the rate of return regulation is that it can encourage ‘cost padding’. This is when firms allow costs to increase so that profit levels are not deemed excessive. Rate of return regulation gives little incentive to be efficient and increase profits. Also, rate of return regulation may fail to evaluate how much profit is reasonable. If it is set too high, the firm can abuse its monopoly power.

6. Investigation of abuse of monopoly power

In the UK, the office of fair trading can investigate the abuse of monopoly power. This may include unfair trading practices such as:

• Collusion (firms agree to set higher prices)
• Collusive tendering. This occurs when firms enter into agreements to fix the bid at which they will tender for projects. Firms will take it in turns to get the contract and enable a much higher price for the contract.
• Predatory pricing (setting low prices to try and force rival firms out of business)
• Vertical restraints – prevent retailers stock rival products
• Selective distribution For example, in the UK car industry firms entered into selective and exclusive distribution networks to keep prices high. The competition commission report of 2000 found UK cars were at least 10% higher than European cars
• Monopolies – diagrams, advantages and disadvantages.

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Essay Plan: Limits on Monopoly Power

Last updated 30 Oct 2019

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In this revision video we build an answer to this question: “Using applied examples of your choice, examine two factors that might limit the monopoly power of a business.”

In theory, a firm with monopoly power such as Coca Cola which has over 40 percent of the US carbonated drinks market, has huge scope to keep their prices higher than they might be if they faced more intensive competition and therefore earn high supernormal profits. The existence of barriers to entry in the market such as strong brand loyalty, patents and copyrights also means that these abnormal profits persist in the long run generating higher returns for shareholders perhaps at the expense of consumer welfare. Brand loyalty makes demand for a firm’s products more price inelastic and this allows a business to set prices higher and extract consumer surplus turning it into producer surplus.

However, one constraint on monopoly power can be the role played by industry regulators who might act as a surrogate competitor even in markets where the degree of contestability is low. A good example of this in the UK has been the energy price cap imposed by OFGEM on the leading electricity and gas suppliers in what is an oligopolistic industry. A price cap constrains what a firm can charge which - in theory - leads to lower prices and a reduced level of supernormal profit. This is shown in my analysis diagram - we can see that total profit is lower, prices down and output higher than under a single price profit maximising monopoly. The impact of a regulatory price cap depends on where the ceiling is set and also whether suppliers respond to maximum prices by successfully cutting their own operating costs to protect profit margins.

In some industries, monopoly power is strong because established firms can take advantage of internal economies of scale which reduces their long run average cost (LRAC) and gives them a significant cost advantage over smaller rivals and also potential entrants. Economies of scale lead to higher profits and also make it more difficult for competitor businesses to successfully enter an industry. A good example of this might be the leading commercial banks such as Barclays, Lloyds and HSBC all of whom - under normal economic circumstances - make very high profits of hundreds of millions of £s each year. There are some challenger banks in the industry such as Metro Bank, but many are finding it hard to growth quickly enough to become a genuine threat to the incumbent operators. If these new banks make little impact, then commercial banks with market power can continue to offer low interest rates for savers and also charge more for personal and business loans. In some industries - known as natural monopolies - economies of scale are vast implying that only one supplier can fully exploit them. In this case, competition is likely to remain limited and market power will remain strong in the long run.

However, although economies of scale can give established banks a built-in advantage, market power can be eroded by the impact of new technologies. An example of this can be seen in retail banking services with the relative success of tech-savvy businesses such as Starling and the App-only bank Monzo which is currently the fastest-growing bank in the UK with over 2.5 million customers with savings deposits of over £1 billion. Many challenger firms operate with a different business model to existing firms and they can compete aggressively in price and non-price terms by targeting better what larger firms may have ignored. Their operating costs are usually much lower and they are less at risk of experiencing diseconomies of scale or X-inefficiencies that often plague firms with a dominant market position. Indeed in many sectors, technological change is reducing the barriers to entry for smaller enterprises, many of whom can use internet platforms such as Amazon web services to sell direct to customers. If entry barriers are lower, then a market becomes more contestable and monopoly power is diminished.

• Complex monopoly
• Natural monopoly
• Local monopoly
• Pure Monopoly

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Essay Samples on Monopoly

The most popular board game monopoly.

You've probably heard about the board game Monopoly, maybe spent a few sleepless night playing it. Or even flipped the table after losing all your fortune. Yeah, this game definitely has the power to suck you in making you forget about the fact that it’s...

History of The Gilded Age and its Victims

Because business is business, it’s strictly financial. The mindset in the Gilded Age (1865-1900) of many tycoons was one of profitability. This era in American history was highlighted by unprecedented growth in industry and economy, but these developments were constructed by selfish greed and corrupt...

• John D. Rockefeller

The Harm Caused by the Google Monopoly to the Economy

Monopoly comes from a Greek word mónos meaning single. This occurs in scenarios where only one supplier delivers goods and services to the market (Mansfield, 2015). Monopoly power thus is the ‘long hand’ monopolists have in dominating the marketplace. Google Monopoly It is an honest...

The Struggle of Economic Growth in the Monopolistic Society

The article I chose discusses the Monopoly problem we have in America. The article I’m choosing to discuss is “America has a Monopoly Problem” by John Mauldin. In this article he brings light to the fact that a greater portion of America’s economy consists of...

• Economic Growth

Competition Policy Challenges In Emerging Technology Industries

Antitrust laws established in a democratic republic serve one ultimate purpose: to promote citizens’ well-being. Given their loyalty to the U.S. Constitution, in which the free pursuit of happiness is enthroned, the public and private sectors and the civil society of the United States of...

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Critique Of Arnold Harberger’s Article On Monopoly And Resource Allocation

Arnold Harberger, in his famous article called “Monopoly and Resource Allocation” innovated how Economists viewed deadweight loss, as well as how monopoly analysis was being done in general. His article was a breakthrough in monopoly research and made empiricism the ruling system of analysis. Throughout...

• Critical Theory

Google Is A Monopoly And Should Be Regulated

There are a lot of tech companies which dominate a different part of the tech industry but Google with its billion-dollar revenues is not a monopoly for reasons discussed below and must neither be broken up or regulated. Arguments Point 1: Choice and Competition By...

Best topics on Monopoly

1. The Most Popular Board Game Monopoly

2. History of The Gilded Age and its Victims

3. The Harm Caused by the Google Monopoly to the Economy

4. The Struggle of Economic Growth in the Monopolistic Society

5. Competition Policy Challenges In Emerging Technology Industries

6. Critique Of Arnold Harberger’s Article On Monopoly And Resource Allocation

7. Google Is A Monopoly And Should Be Regulated

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Is Antitrust Just a Quaint Notion in the Digital Age?

SUMMING UP: Given the US Department of Justice's new antitrust complaint against Google, is it time to revisit what defines a market monopoly in the internet era? James Heskett's readers consider the potential ramifications. Open for comment; 0 Comments.

• 30 May 2019
• Working Paper Summaries

US Antitrust Law and Policy in Historical Perspective

Since the late 19th century, American antitrust law and policy has responded to multiple changes: technological advances that have transformed business structures, political imperatives that have reformed regulations and informed prosecutorial discretion, and economic theories that have reshaped the boundaries of government interventions into the economy. Today, antitrust remains a contested field.

• 06 Dec 2017

Is It Time To Break Up Amazon, Apple, Facebook, or Google?

SUMMING UP Would breaking up tech giants like Facebook and Google be good antitrust policy or bad for capitalism? James Heskett's readers join the conversation. Open for comment; 0 Comments.

• 22 Feb 2016
• Research & Ideas

The ‘Mother of Fair Trade’ was an Unabashed Price Protectionist

Historian Laura Phillips Sawyer unearths the story of little-known drug store owner Edna Gleason who, in a man’s world, helped fire a progressive movement to protect small-business owners from price-slashing chains. Open for comment; 0 Comments.

• 11 Jan 2010

Mixing Open Source and Proprietary Software Strategies

Open source and proprietary software development used to be competing strategies. Now software firms are experimenting with strategies that mix the two models. Researcher Gaston Llanes discusses recent research into these "mixed source" strategies. Key concepts include: Software companies are taking a "best of both worlds" approach by creating products that use a combination of OS and proprietary software code. The researchers wanted to get a clearer sense of when a profit-maximizing firm should adopt a mixed-source business model and what that model might look like under different circumstances. Results indicate recurring patterns and strategies that managers can take into consideration when setting strategy. Closed for comment; 0 Comments.

• 26 Feb 2007

The Power of the Noncompete Clause

Noncompete clauses seem nearly universal—and not just in technology companies. But the effect is especially strong on specialist and "star" inventors, according to new research by Harvard Business School's Matt Marx, Deborah Strumsky, and Lee Fleming. Marx reflects on the business and career implications in this Q&A. Key concepts include: Noncompete clauses may be ubiquitous or nearly so, particularly in venture-funded companies, but not everyone is affected identically by noncompetes. Fundamentally, noncompetes are a form of monopoly. Just as a patent allows a monopoly on a technique or tool for a limited amount of time, a noncompete (if enforced) affords a temporary monopoly of sorts on a person. In Michigan, inventors whose patents are highly cited in other patent applications were less likely to change jobs following a change in the state law. The effect for "specialist" inventors was even stronger. Star or specialist inventors wishing to explore career opportunities may need to look outside a state that enforces noncompetes. From an employer's perspective, keep in mind that noncompetes are far from ironclad. Closed for comment; 0 Comments.

139 Monopoly Essay Topic Ideas & Examples

🏆 best monopoly topic ideas & essay examples, ✅ simple & easy monopoly essay titles, 🔍 interesting topics to write about monopoly, 👍 good research topics about monopoly, 📌 most interesting monopoly topics to write about.

• Role of Advertising in Monopolistic Competition and Oligopoly Advertising The goal of product differentiation and advertising in monopolistic competition is to make sure the the market is under control, and as a result, charge a higher price.
• John D. Rockefeller – Standard Oil Monopoly Baylor stated that, in order for the Standard Oil Company to compete with the Russian Oil in the Asian and European Countries, John D Rockefeller subsidized the foreign prices of oil.
• A Monopoly Market Player: Apple A monopoly market player is a firm, which is the only one existent in a market. The right to own an intellectual property is a result of hard labor and investment in creating it.
• Market Structures: Monopolistic Competition According to Mankiw, a monopolistic competition market structure is characterized by the presence of numerous small firms, each being relatively small in comparison to the overall market size.
• Netflix Company’s Monopolistic Tendencies The purpose of the present paper is to examine if the Netflix’s tendencies to monopoly are increasing. The characteristics of monopoly and oligopoly in the modern setting are given.
• Monopoly as a Market Structure First are the natural monopolies which occur due to the fact that only the firm is able to access resources used in the production of the final product. Therefore, the equation TR=P*Q is represented by […]
• Difference between Clayton Antitrust Act and the Sherman Antitrust Act The Clayton and Sherman Antitrust Acts were the first antitrust legislation to be enacted in the United States. The Federal Trade Commission and the Department of Justice play significant roles in the enforcement of antitrust […]
• Pure Competition vs. Monopolistic Competition Number of participants firms In a pure competitive market structure, the buyer does not have any effect on the price level of goods in the market.
• The Google Dilemma Regarding Antitrust and Intellectual Property Thus, the lawsuit is at the heart of Google’s control over the Internet for millions of people in America and around the world.
• Internet as a Basis for “Knowledge Monopoly” As a result of the internet being incorporated in day to day lives, this study will try to investigate whether “Internet creates favorable conditions for monopolization of knowledge, the role of the Internet, as a […]
• Monopolistic Competition of Smart Phones In the flurry of the responses that followed, there was concern whether the smart phone market was becoming monopolistic. This was a clear indication that the competition in the smart phone market was becoming monopolistic.
• Uber’s Obstructed Quest for Monopoly However, the primary problem is that Uber failed to understand the conditions necessary to remain a monopoly. Although some economists believe that Uber’s management is to blame for its ever-deteriorating revenues, the truth is that […]
• Monopolistic Competition as a Market Structure However, due to the fact that each of the firms has a slightly unique product compared to the rest of the firms, then each firm has a specific consumer and hence each of the firms […]
• Monopoly: The Source of Monopoly Power The source of monopoly power is by curbing production to price its products higher, creating barriers for competitors to enter the market, and by capitalizing on key resources in the industry.
• Safaricom Company in the Changing Monopoly Market Therefore, in the short run, the behavior of the oligopoly model is that it is tough to enter such a market, especially if the economic scale does not measure up to the companies in the […]
• Microsoft Corporation and Monopolistic Strategies In the ideal, a monopolist firm has the potential and capital base to fully exploit the market through lowering quality, cost of inputs, and increasing the prices for its products in order to attract higher […]
• Microsoft Operating System for Personal Computers a Monopoly in the Markets Microsoft operating system has penetrated most of the markets and is considered to be the most popular of the operating systems in use today.
• Clayton Antitrust Act 1914 Initially the United States government used fines to curb the monopolistic tendency but later introduced the Sherman Antitrust Act in 1890 and then the Clayton Antitrust Act in 1914.
• Inequality and Monopoly in Ancient Empires According to some sources, the reasons behind the inequality in wealth and power in ancient empires is not mere monopolies. In Rome alone, the capital of the empire, the population throughout the first and second […]
• Monopolistic Competition Aspects Products aimed at higher end consumers usually have a brighter and higher quality packaging and are placed on the shelves in the eye of the consumer.
• Monopolistic Advantage Theory Applied to China The article “Internationalization and performance: evidence from Chinese enterprises” by Chao Zhou examines the internationalization performance link using data from Chinese firms and the effect of company size on the relationship.
• Google and Microsoft: Antitrust Law Extra Credit Due to the unclear outcomes of the Microsoft case, it is difficult to say if the current case against Google will be successful as well.
• Monopolies and Exploitation of Workers At the beginning of the 20th century, the majority of large industries were controlled by millionaire families, such as the Rockefellers, the Carnegies, and the Vanderbilts.
• How Intellectual Property Laws Don’t Contradict the Sherman Antitrust Act of 1890 In the United States Congress, the Sherman Antitrust Act of 1890 was the first statute to outlaw trusts. Conclusively, exaggerated conceptions of the power granted by IP rights and anticipated dangers to competition abound in […]
• Monopolies, Market Dominance and Models of Antitrust On the other hand, the American model of antitrust law considers market structure, competition, and consumers by ensuring fair competition in an open-market economy.
• Digital Antitrust Laws in the United States In 1890, antitrust law was formally established to ensure fair trade and prevent the formation of monopolies that use their market position to take advantage of consumers. The Clayton Act was passed in 1914 and […]
• Monopolistic Power and Mitigation Strategies in Healthcare This paper focuses on the complications caused by monopolistic power in the healthcare market, discussing the impact of the proposed Affordable Care Act changes and the strategies of problem mitigation for stakeholders.
• Monopolistic Competition Practical Observation Regarding the design, Dove used the traditional for the company logo and color pallet with the additional images of the colorful-packaged chocolates included in the bag.
• Understanding Monopoly: Market Dynamics and Profit Maximization At the opposite extreme to perfect competition, there is the situation where there is only one producer in the market. Hence there must be sole producer or seller in the market, if it is being […]
• Antitrust Laws the Case Study In 1956 Hush -a phone filed a suit against the company so that it could be allowed to improve the company’s telephones through its products and the courts were in favor of Hash a phone.
• Labor and Monopoly. Human Rights Simultaneously, the laborers do not enjoy any control on design and production over the work, thus, the staff are uncomfortable with their work. However, in the case of flight attendants, the profession is different in […]
• Antitrust Charges Against Johnson & Johnson 4 million managers were charged for drug prescriptions and that they had an overdose of drugs which was in the interest of J & J to increase income and profitability.
• Blue Cross and Blue Shield Antitrust Case In response to the charges, the association maintained that the charges lack merit. To enhance competition and productivity, the firm should avoid entering into agreements that compromise competition in the market.
• PEXA as a Natural Monopoly in the Current Environment The author makes a conclusion that digital transition implies some risks, and the case of PEXA represents this kind of risk namely, occurrence of monopoly under the aegis of state.
• “She Argued Facebook Is a Monopoly” by Dina Srinivasan The article refers to the protection of personal data that may be inappropriately used by large social networks against the will of their users.
• The Issue of Big Monopolies Today The discussion contains a couple of significant ideas and assumptions that provide the recipient with the opportunity to gain an in-depth understanding of the current situation in the international market.
• Industrial Regulation and Antitrust Laws This act paved way for the formation of the Federal Trade Commission which formulates and enforces laws that prohibit unfair trade practices by the major firms in an industry.
• Price Control and Monopolistic Competition According to Charles Stein when the supply is limited and demand increases the prices rise and people are ready to pay more than these tickets really cost. There is a certain rule in the rise […]
• Is United States Postal Service (USPS) a Monopoly? Spooner states: “By the old articles of Confederation, it was declared “the United States, in Congress assembled, will have the sole and exclusive right and power of establishing and regulating post-offices from one State to […]
• The Concept of Monopolistic Competition The operators are also free to set the prices of their products irrespective of the competitors’ moves or reaction as the competition is based on non-price related factors. This is simply because they are felt […]
• Perfect and Monopolistic Models Definition and Description A perfect market or perfect competition is a market situation where neither the sellers nor buyers, have the market power to influence the prices of goods and services.
• Government Regulation of Monopolies In this kind of regulation, the government sets rules and regulations to control the operations of firms that have monopoly power in their own industry.
• The Monopoly of Google in Digital Library The launch of Digital Library shows that when the conditions for monopoly are prevalent, that is, no barriers to entry and exit, perfect information for business decision-makers and consumers, perfect rationality on the part of […]
• Microsoft Monopoly Breakdown Market power is evidenced in the share of the market, market leadership, and brand preference. Research of customers’ opinions and reactions to products is often sought as a basis for the price.
• The Problem of Effective Monopoly Management The products supplied by the monopolist in our markets had been successful for a long period but the politicians worked for the downfall of the monopoly and its benefits to its corporation.
• Morals and Monopoly: Exploring Changes in the US Policies Therefore, it can be assumed that the changes in the political landscape of the state served as the basis for enhancing the principles of acceptance within the state.
• Monopolistic Competitive Firms This attracts new firms into the market in the long run given that the monopolistic market barriers to entry are low, firms have good knowledge of the market and there is an opportunity for the […]
• Monopolies and Market Power in the US Economy On the other hand, monopolies aim to drive their competitors out of business or threaten new entrants to the market by setting prices below their costs and absorb losses until their competitors cannot survive longer.
• The Charlotte American Airlines Monopoly More than 90% of the passengers at the Charlotte airport use American Airlines, and the average domestic fare is $407. The loss of corporate flight traffic would have a massive influence on the airport’s profitability, […]
• Monopoly Pricing Strategies in Case of Competition When it comes to a monopoly, the managers should offer a pricing strategy based on establishing the highest possible price that a company can propose with no engagement in price gouging.
• Night Club Monopoly Competition in the UK The operations in this model are that a recent monopoly will continue enjoying the supernormal profits in the short run. This occurs in the long run after the entry of a new similar but differentiated […]
• Amazon Corporation as a Monopolist and Innovator In addition, it is possible to anticipate that Amazon would expand the range of Whole Foods, thus attracting younger customers to the network, who would like the possibility of online orders and delivery.
• Driverless Cars and Monopoly Relationship The relationship between monopoly and AVs can be explained by the fact that only companies that will be able to beat their competitors in terms of reliability and safety will stay in the market.
• Oligopoly Market and Monopolistic Competition The market price falls until the firms in the market start to make economic losses. In the long-run, the economic losses make the firms to exit the market.
• Google Company as a Monopoly The ability of a monopoly to raise its prices indeterminately is harmful to the consumer and, by extension, to the economy.
• Internet Monopolies: Everybody Wants to Rule the World The article stated that the majority of large and successful businesses that operate with the help of the Internet are fighting very hard to prevent fresh and new businesses from entering the market and capturing […]
• Antitrust Legislation and Competition Laws The latter regulation was the first act in the US history to outlaw monopolistic and predatory business practices; it was signed into law in 1890 and focused on the prevention of the trust practices that […]
• The US Competition and Antitrust Policy According to Whinston, the second of the half of the 19th century was characterized by major developments that significantly transformed the manufacturing industries in the U.S.
• Monopolies or Competition – The Airlines Industry Consequently, it would be important to insert foreign exchange clauses in the repayment agreement to ensure that deficits are catered for by the subsidiary and hence avoid a situation where the profitability, cash flow, and […]
• Google as a Monopoly of the Web Search The company has dominated the market by acquiring more than half of the market share. This has led to the company acquiring a relative higher fraction of the market.
• Antitrust Law Violation in the Market The trial court in the case held that the market to be observed in the determination of the flexibility of packaging materials had to be observed in regard to the competition dynamics.
• Microeconomics: Competition and Monopoly The following is a review of an example of an organisation in Maryland operating in a pure competition market and one in a pure monopoly market.
• Antitrust and Unfair Trade Practices: The Dynamic Corporate Environment One of the beneficiaries would be the government and the economy because if trade was to thrive, then the government could rake in revenue in form of taxes while the society would benefit if the […]
• Duopoly and Unregulated Monopoly Owing to the fact that the number of firms is small, there is often a significant degree of interdependence between the firms.
• Non-Price Competition in Monopoly and Oligopoly As such, it is overbearing that the digital company apply the unsurpassed strategies for the notebook in an effort of maximizing its revenue as well as enjoying pure monopoly.
• Antitrust Claims Faced by Microsoft Corporation The long antitrust accusation against the software giant has a significant impression to the company’s reputation irrespective of the fact that they result in remarkably little impact.
• Microsoft Corporation Is Facing Antitrust Claims It was also alleged that Microsoft had made some anti-competitive and illegal contractual arrangements with various internet service providers and computer manufacturers and was also involved with other illegal actions and also discouraged its competitors […]
• Price Discrimination and Monopolistic Competition According to Varian, the competitive market is characterised by a large number of firms that deal identical products and this aspect limits a firm’s ability to exploit the consumers by selling the product at a […]
• Antitrust Proceeding: U.S. v. DuPont It is imperative to note the effects of the decisions to be reached by the court on the market in a case whereby the parties to the case are not both parties in the running […]
• Monopoly and Allegations of Microsofts Monopoly in the Sottware Industry As for the accusations of monopoly concerning the market browser, it was investigated and found out that Netscape had the initial monopoly in the existing browser market and that Microsoft changed the situation, turning the […]
• Antitrust Case: FTC Wary of Apple and Google Since the introduction of the iPhone in 2007 and the iPad in 2010, Google has served as the default search engine.
• Microsoft Corporation Monopoly In this case, the company is able to make conditions on the access and right of use of that particular product.
• Pure, Per Se and Natural Monopolies There are many costs related to the production and the consumption of gases. The above policies, market structure policies and environment policies would reduce externalities due to production and emission of gases.
• Oligopolies and Monopolistic Competition The consumer segment is involved in selling its products while the industrial segment is involved in the production. It is however notable that the two companies that would be involved in the acquisition is McCormick […]
• Internet Monopoly of Knowledge Some of the points are the theory of the profound impact of media on the social shifts in the course of history, the other one is the analysis of milestones of the mass communication history, […]
• The Problem of Monopolies Moreover, the lack of the substitutes is observed, and the company becomes a monopoly within the market. Thus, the situation was discussed by the government as critical because of Microsoft’s possibility to develop into the […]
• Companies and Monopolies This has led to some of them adopting the use of monopoly in order to stay ahead of other companies in the market.
• The Pros and Cons of a Monopoly Organization In an article in the New York times titled ‘Dismantling Tepco’ the author supports the move by the local government of Tokyo of setting up of new natural gas facility that will compete with Tepco […]
• Economics of Monopoly The time clock market states it is assumed that the degree of monopoly of a market segment is determined by the degree of saturation in the seller market, which is a measure of independent firms […]
• Monopoly of the United States Postal Service The congress then later directed the expansion of the postal service to include the costal and western regions. The postal service became a monopoly under the legislation of the congress.
• Monsanto Company’s Monopoly It was founded in 1901 and well known as a multinational corporation that leads in biotechnology in the field of agriculture; additionally it produces genetically engineered seed.
• Monopoly in the Unites States of America This is a form of monopoly whereby the government provides exclusive opportunity to a firm or private individual to be the only supplier of good or service to the market.
• Capitalism: Exploitation of the Poor and Resource Monopoly Most defenders to capitalism would not agree to this objection because they believe capitalism presents equal opportunity to both the poor and the rich.
• Monopolistic Competition It is important to understand the nature of competition and the competition that exists within the marketplace for the sake of businessmen and consumers.
• Monopolies Proposed Mergers According to allocative efficiency theory, for a perfect competition to occur, there must be optimal distribution of goods and services, the consumers have a wide variety of choice to level that price equals the Marginal […]
• Tariffs and the Extraction of Foreign Monopoly Rents under Potential Entry
• Manager‐Union Bargaining Agenda Under Monopoly and with Network Effects
• Output and Welfare Effects in the Classic Monopoly Price Discrimination Problem
• Monopoly That Makes Supernormal Profits is Acting Against Public Interest
• Quality, Upgrades and Equilibrium in a Dynamic Monopoly Market
• Discriminating Monopoly, Forward Markets and International Trade
• Global Commercial Seeds Market Suppressed by Patent Monopoly
• Monopoly, Diversification through Adjacent Technologies, and Market Structure
• Telecom Market Liberalization and Service Performance Outcomes of an Incumbent Monopoly
• Monopoly Pricing over Time and the Timing of Investments
• Monopoly Power, Increasing Returns to Variety, and Local Indeterminacy
• Economic Rationale for Monopoly Behaviour and Potential Impacts
• Managerial Incentives and Durable Goods Monopoly
• Price Discrimination and the Location Choice of a Durable Goods Monopoly
• Options for Restructuring the State-Owned Monopoly Railway
• Monopoly Unions and Corporatism: Implications for Strategic Trade Policy
• Process Innovation and Product Quality Improvement in a Dynamic Monopoly
• The Federal Trade Commission, Oligopoly, and Shared Monopoly
• Monopoly, Inequality and Redistribution via the Public Provision of Private Goods
• Pollution Taxation and Revenue Recycling Under Monopoly Unions
• Monopoly Investment, Pricing and Production under Intertemporal Demand Uncertainty
• Heterogeneous Consumer Expectations and Monopoly Pricing for Durables with Network Externalities
• Domestic Content Requirements with Bilateral Monopoly
• Monopoly Pricing under Demand Uncertainty: Final Sales versus Introductory Offers
• Optimal Monopoly Price Paths with Expanding Networks
• Monopoly and the Rate of Extraction of Exhaustible Resources
• Efficiency Wages, Monopoly Unions and Efficient Bargaining
• Information Monopoly and Commitment in Intermediary-Firm Relationships
• Distributive and Regional Effects of Monopoly Power
• The Mexican Fixed National Long Distance Market: Evidence of Monopoly Power
• Economic Market Conditions: What are Monopoly and Oligopoly
• Mathematical Modelling for Time-of-Use Pricing of Electricity in Monopoly and Oligopoly
• The Network Industry, Monopoly Regulation, and Social Optimum
• Differences between Monopoly and Monopolistic Competition
• Government-Owned Car Insurance Monopoly in Canada
• Foreign Monopoly and Optimal Tariffs for the Small Open Economy
• Monopoly: Marginal Cost and Long Run Equilibrium
• Socially Optimal Liability Rules for Firms with Natural Monopoly
• Natural Monopoly and Railway Policy in the Nineteenth Century
• Monopoly Exploitation and Rent-Seeking as an Inevitability of Capital Concentration
• Google Paper Topics
• Competitive Strategy Research Ideas
• Apple Topics
• Government Regulation Titles
• Netflix Topics
• YouTube Topics
• Amazon Topics
• Pluralism Paper Topics
• Chicago (A-D)
• Chicago (N-B)

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"139 Monopoly Essay Topic Ideas & Examples." IvyPanda , 20 Sept. 2023, ivypanda.com/essays/topic/monopoly-essay-topics/.

IvyPanda . (2023) '139 Monopoly Essay Topic Ideas & Examples'. 20 September.

IvyPanda . 2023. "139 Monopoly Essay Topic Ideas & Examples." September 20, 2023. https://ivypanda.com/essays/topic/monopoly-essay-topics/.

1. IvyPanda . "139 Monopoly Essay Topic Ideas & Examples." September 20, 2023. https://ivypanda.com/essays/topic/monopoly-essay-topics/.

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IvyPanda . "139 Monopoly Essay Topic Ideas & Examples." September 20, 2023. https://ivypanda.com/essays/topic/monopoly-essay-topics/.

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