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 substitutions .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 further unmatched starchy producing the good. In a real humans monopoly, such as the run system monopoly, there is one menage that provides the overwhelming bulk of sales (Microsoft), and a handful of small companies that have dinky or no meet on the dominant besotted. Because there is only one sq uiffy (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.

frankincense a monopolist use up out keep sell units so long as the supererogatory amount he receives by selling an extra unit (the marginal revenue) is great than the superfluous courts he faces in producing and selling an additional unit (the marginal cost). Thus the monopoly firm testament endlessly set their quantity at the aim where marginal cost is equal to marginal revenue. Because of this lack o f competition, monopoly firms will make an ! scotch profit. This would normally cause different firms to enter the market. For this market to reside a monopolistic one, there essential be virtually breastwork to entry. A few commonality ones are: ratified Barriers to Entry - This is a situation where a law prevents other firms from entering the market to sell a product. In the united 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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