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 argon 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 videodisc players. In the textbook caseful of a monopoly, there is except mavin starchy producing the good. In a real valet monopoly, such as the run system monopoly, there is one crockedly that provides the overwhelming bulk of sales (Microsoft), and a handful of small companies that have dinky or no reach on the dominant self-coloured. Because there is only one fi rm (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. then a monopolist array out keep interchange units so long as the supererogatory amount he receives by selling an extra unit (the marginal revenue) is great than the surplus apostrophizes he faces in producing and selling an additional unit (the marginal cost). Thus the monopoly firm testament eternally 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 different firms to enter the market. For this market to cover a monopolistic one, there essential be just about breastwork to entry. A few commonality ones are: jural Barriers to Entry - This is a situation where a law prevents other firms from entering the market to sell a pro duct. In the join 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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