Monopoly - Term Paper Example

Comments (0) Cite this document
Monopoly Name Institution Date Table of Contents Table of Contents 2 Introduction 3 Body 3 Characteristics of Monopoly 3 Merits of monopoly 4 Demerits of Monopoly 6 Conclusion 8 References 9 Introduction Monopoly is the Greek term meaning alone or single. This term exists when a specific enterprise is the only sole provider of a particular commodity…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER93.7% of users find it useful
Read TextPreview

Extract of sample "Monopoly"

Download file to see previous pages The company has unlimited market power even influencing how they charge higher prices. This may be confused with the ability to possess or own big businesses. Size is not all the characteristics of a monopoly in an enterprise, because a small business venture may also possess ability control market more than a big and existing companies. Body Characteristics of Monopoly An enterprise that enjoys monopoly exhibits a number of characteristics in the market or economy of operation. First, it maximizes profits. This is a value through the sales of the company’s services or goods to its consumers. For example in most of the third world countries and also in developing economies, most of the services or goods which have overall public consumption give way for the providing company to be a profit maximize (Lele, 2007). If it is only providing the electrical services for example, maximizing its profits is an easy feet to reach. This comes simply because there is or if any little competition from any other providing company. A company enjoying monopoly carries the tag of a price maker. Through this, the interpretation is that the company has the veto powers to decide and price goods or products, which it sells. For example, if the quantity is well in place for adequate market supply, the company therefore goes ahead and demands the price they desire as a firm (McKenzie& Lee, 2008). The characteristic of an institution enjoying monopoly is that one which creates high barriers to entry. This proposition aims at making sure that other sellers are unable to enter the market of the monopoly. For example, a company that may afford to offer promotional campaigns or motivating enticement to a publicly consumed good or service sets the standards of its customer preferences upon its competitors. In a situation where a communication company provides free minutes at a given point to its customer, a newly established competitor may find this a high level of barrier to counter given the minimal number of its customers in the same market. Being a single seller is yet another characteristic of a company enjoying monopoly in a given economy. A single seller dictates the supplies and influences the market trend with minimal interruptions (Kennedy, Waltzer & Atlantic City Historical Museum, 2004). This kind of the market brings out the existence of one seller of the good and it produces all the output. This means the whole market or region sings the tune or consumes the products of a single company. Finally, price discrimination is another characteristic that accompanies a company practicing monopoly. A monopolist does not need any outsider’s mind when choosing or changing the price of goods or service that it provides. For example, a company can sell more quantities at a relatively lower price than the competitors can even though there is minimal competition. The same case can apply when the company may decide to sell less quantities and charge high prices in a less elastic market. Merits of monopoly Certain monopolies exhibit various advantages for consumers, and social welfare. One of the advantages is that these companies are the investment in research and development. It is a common understanding that the monopolies make supernatural ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Monopoly Term Paper Example | Topics and Well Written Essays - 2000 words”, n.d.)
Retrieved from
(Monopoly Term Paper Example | Topics and Well Written Essays - 2000 Words)
“Monopoly Term Paper Example | Topics and Well Written Essays - 2000 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document


Monopoly and Monopoly Power in Microeconomics

...? monopoly and monopoly power in microeconomics A market structure is defined as the situation where there are many firms in the market and they produce identical products. Some of the types of market structures are monopolistic competition, oligopoly, duopoly, monopoly, perfect competition and monopsony. The essay will talk about monopoly which is a form of market structure. It will also put emphasis on monopoly power. The impacts the monopoly power can have on the consumers and the impacts it can have on the operation of the markets will be the topic of discussion. Introduction The word “competitive” means ‘not monopolies’. A market structure that does not satisfy the assumptions of perfect competition is regarded as the market... ...
6 Pages(1500 words)Admission/Application Essay

Microsoft Monopoly

...Microsoft monopoly-Why was Microsoft investigated for antitrust behavior? Microsoft Company is one of the biggest companies in the world. It is also termed to be a computer software industry that is diversified. The reasons that lead to Microsoft being reconnoitered for antitrust performance is the fact that there were reports of Microsoft Company abusing the position they had as one of the leaders in supplying operating systems of computers. It leads to various lawmakers carrying out investigations if Microsoft Company was creating a monopoly to the markets available for the computer software’s. These lawmakers later found out that Microsoft Company was causing a monopoly in the...
2 Pages(500 words)Essay

Microeconomics: monopoly

...1) A monopolistic competitive industry is one in which there are many producers selling product in a same genus but these products are differentiatedon the basis of advertising, quality, ingredients and other differentiating factors such as brand name, type of service etc. A firm located in this industry faces a more elastic curve than a monopoly because if producers try to charge higher prices to consumers, they can turn to other producers, a luxury which is not available in a monopoly. As a result, the resulting curve is more elastic than a monopoly indicating that this kind of firm cannot just charge any price, like a firm having a monopoly power. Similarly, the...
2 Pages(500 words)Essay


... Monopoly In the economic context, there are different types of interaction. Monopoly is included in the types of interaction occurring in the local and global market. It is the corresponding scenario wherein a certain industry or market has a single or sole participant defined as the seller or the provider of the product or service. Monopoly can be considered as one of the goals of a company due to the fact that it can be equated to control in the market. There are different prerequisites that can determine monopoly in a particular market. One is the presence of a single producer in the said market. Another is the absence of any other company with products or services that can be compared to that offered by the monopolist... . And...
7 Pages(1750 words)Essay

Google Monopoly

...Google’s Monopoly Status: Does it exist? Introduction Google was born from a project performed by two graduate at Stanford The students had envisioned a “large scale hypertextual web search engine” (Brin & Page, 1998), but it is likely that they did not foresee the popularity that their search engine would have, nor the company that would appear as a result. Google emerged from these beginnings and has become far more than just a search engine. Google is a profit producing company that is a powerful force in the world of advertising, as well as other products and services. It has been reported that “Google is one of the most important companies in the technology space. It delivers the world’s top search engine, the most...
5 Pages(1250 words)Term Paper


...Economists group industries into four distinct market structures (pure competition, pure monopoly, monopolistic competition and oligopoly) to understand how price and output are determined and to assess the efficiency or inefficiency in the many product markets in the economy (McConnell and Brue, p.179). This paper will present and examine the case of De Beers Diamond Jewellers as a monopoly in the diamond industry. For centuries, India and Brazil were the only producers of diamond and up to the mid-1800 the world supply of diamonds was so scarce that even monarchs and noblemen found it hard to hold them. It was unthinkable to make diamonds available to the general public. However, supply increased...
4 Pages(1000 words)Essay


... Monopoly Inefficiency Monopoly This refers to a single imperfect firm which restricts output in order to maximize profit.The monopoly is viewed as the price maker and will produce less but sell at higher prices. Inefficiency In respect to monopoly, inefficiency is defined as the in ability of the firm to allow the forces of demand and supply to freely interact to establish equilibrium prices and quantity without the firm intervention (Hirschey 111). The monopoly being a price maker, it restricts the quantity and charges a higher price and hence creates a dead weight loss to consumers. Perfect completion This refers to a market structure with many sellers and buyers with sellers being price takers and has no control over prices... and...
2 Pages(500 words)Admission/Application Essay


... Monopoly Problems of water scar The demand of water is more than its supply because of the rapid growth in human population. The rate of replenishment of water sources is un-proportional to its usage. There is a global crisis of fresh water. Over 1 billion people in the world lack access to clean water. Economists indicate that scarce resources such as water are usually priced high (Baumol &Alan 288). Many rivers are running dry and water tables dropping across the globe. Industries and agriculture are the major consumers of fresh water (Kalpakian 174). About 70% of the world’s fresh water finds its use in irrigation and other agricultural activities. Industries consume approximately 20%. Other than the effects of global warming... Monopoly...
2 Pages(500 words)Assignment


...Monopoly Power The Bible contains a lot of information about economics because it was meant to govern and guide people according to God’s will. It defines wealth as the ability to have material resources that bring satisfaction to people. People use such resources in enjoying monopoly power. Throughout the Luke-Acts chapters, people show great support to the Roman Empire and join in fighting Jesus and his followers. “No one can serve two masters; for either he will hate the one and love the other, or else he will be loyal to the one and despise the other. You cannot serve God and mammon” (The Holy Bible Mathew 6:24). Jesus explains the rule of monopoly power and encourages people to put...
1 Pages(250 words)Coursework

LGBT is a bad idea in university because

5 Pages(1250 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Term Paper on topic Monopoly for FREE!

Contact Us