StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Monopoly - Term Paper Example

Comments (0) Cite this document
Summary
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 PAPER94.3% of users find it useful
Monopoly
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
  • CHICAGO
(“Monopoly Term Paper Example | Topics and Well Written Essays - 2000 words”, n.d.)
Retrieved from https://studentshare.org/education/1494436-monopoly
(Monopoly Term Paper Example | Topics and Well Written Essays - 2000 Words)
https://studentshare.org/education/1494436-monopoly.
“Monopoly Term Paper Example | Topics and Well Written Essays - 2000 Words”, n.d. https://studentshare.org/education/1494436-monopoly.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Monopoly

Monopoly and Monopoly Power in Microeconomics

... structure is characterized by freedom of entry and exit. Monopolistic competition along with oligopoly constitutes the structure of imperfect competition. Firms that are imperfectly competitive offer many products. The products are offered at administered prices. The price changes are costly and slower. The prime prediction of the theory of monopolistic competition is that firms will produce at the level where marginal cost equals marginal revenue in the short run. However in the long run, the firms will operate at zero profit levels and the demand curve will be tangential to the average total cost curve. Body A monopoly is said to exist when there is only supplier in the market. Thus monopoly is characterized by lack of competition. Size...
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 industry of computers.The lawmakers came out with facts...
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 curve is less elastic than purely competitive firms, because unlike pure...
2 Pages(500 words)Essay

Monopoly

.... And lastly, there are factors that can contribute to the action of monopoly such as the barriers to the entry of other products or company (Klein; Sowell 80-87). Another important characteristic of the monopolistic company is the capability to control the price of the product in the market. This can be one of the main reasons that anti-monopoly policies are being implemented to be able to protect the consumers with regards to the uncontrollable increase in the prices of products and services. There are different products and utilities that can be classified in a monopolistic market which include gas or fuel, electricity, water, cable TV and telephone serve companies. To be able to achieve an understanding of the principles of monopoly...
7 Pages(1750 words)Essay

Google Monopoly

...perating system and the best advertising platform in the world” (Reisinger 2010). As the company’s popularity continued to spread, Google was able to acquire other companies, which only served to continue its explosive growth. As it has been reported, Google acquired several small companies to develop products for itself. In 2007, YouTube, an online video site, was acquired… Several other acquired companies include Keyhole Inc. (Earth Viewer, later developed into Google Earth), Adaptive Path (weblog statistics application), JotSpot (wiki developer technology for collaborative websites), DoubleClick, and Postini (enterprise message security and compliance). (Gudimallan, 2009). Google as a Monopoly: The Law Google is very popular indeed....
5 Pages(1250 words)Term Paper

Monopoly

... owner of South African diamond mines (Kretschmer, p.1). Ernest Oppenheimer, a German immigrant established himself as a prominent figure in the South African diamond and gold industry in the following three decades. As a diamond expert, he entered the gold business, created the Anglo-American Corp. of South America and owned a dominant share of South Africa’s gold mines. With his greatest ambitions, he finally gained full control and ownership of DeBeers in 1926 and this was the start of De Beers as a monopoly. There are factors that made it possible for a certain company such as De Beers to be considered as monopoly in the industry. Market structures are determined according to the degree of difficulty of entry and exit...
4 Pages(1000 words)Essay

Monopoly

...and quantity (Hirschey 123). The equilibrium price and quantities are determined by instruction of economic forces of demand and supply. Contrasting monopoly and perfect completion Price determination Monopoly is a price maker via the marginal cost pricing mechanism while perfect completion is a price taker (Hirschey 124). The monopoly retracts output and charges higher prices whereas perfect completion market has no control over prices which are determined by economic forces. Barriers to entry In perfect completion, there is free and exit while in monopoly, there are strict entry regulations leading to lack of completion and thus inequality products. Dead weight...
2 Pages(500 words)Admission/Application Essay

Monopoly

... 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

...nothing but show-offs. You lock people out of the kingdom of heaven. You won’t go in yourselves, and you keep others from going in” ( Mathew 23: 13-14). Through this, it is true how Pharisees denied people from going to heaven since they enjoyed monopoly power. They knew people were so dependent on them in guidance of their spiritual lives. Conclusion Monopoly power, according to the Bible is a worldly treasure that will deny many people a chance to enter heaven. According to Jesus, most people used such opportunities in accumulating material wealth instead of putting all their treasures in heaven. As a lesson, it is very important to consider what Jesus said and be on the move to change, repent and give...
1 Pages(250 words)Coursework

What Are The Main Causes that Lead to Monopoly

.... In a monopoly market the firm doing business controls the price which means that it is not dependant on the marketplace to determine the price. The price is set at the quantity and price point that optimizes profit for the business entity. The fact that the company controls the price variable does not mean that a monopoly has immunity to the laws of demand and supply. The market demand curve just as in the perfect competition is downward sloping, but the difference is that in order to maximize profits price is not part of the equation and the formula is determined by the following equation, MR=MC. An example of an intangible asset or legal entry of barrier which allows the formation of a...
7 Pages(1750 words)Assignment

Is Microsoft really a Monopoly

... by many as a developer – centric business culture and has created a name for itself in terms of customer support (Microsoft – About Microsoft, 2008). The company as mentioned earlier has faced a number of different criticisms for being monopolistic in nature. The next section of the essay will deal with understanding what monopolistic markets are. This will provide a better view and basis to judge whether or not the company is monopolistic in nature and if the criticisms are in fact true (Microsoft – About Microsoft, 2008). Monopoly: Monopoly refers to a market where a particular individual or enterprise has sufficient control over a product or service and has the controlling power where it can decide the others who can have access...
12 Pages(3000 words)Term Paper

Imperfect Markets - Oligopoly and Monopoly

...iate the oligopoly markets from other market types. Firstly, in the oligopoly markets, there is a strong barrier for entrance into the market. Here in these markets, the barriers for entry into the markets are varied and the various industries might have different levels of entry barriers. Secondly, these markets have a few companies and hence the companies require taking account of each other and the companies are mutually dependent on one another. This means that the companies will be affected by the decisions made by the other firms in the markets. Monopoly: Monopoly is a market structure where there is only one firm in the markets. The products that are produced in these markets are unique and there is not easy entry into the...
9 Pages(2250 words)Assignment

Types and Drawbacks of Monopoly

...is that they can fix the prices of their products comfortably in the absence of any kind of competition. The sufferer will be always the consumers since they have not many options left. “In the absence of government intervention, a monopoly is free to set any price it chooses and will usually set the price that yields the largest possible profit” (Stigler Small scale industries may not develop if monopoly exists in the market. Even though monopolist market conditions are legal, in many countries it is legally controlled in order to save the interests of the customers. “In a free-market economic system, people work to make money and companies exist to make profit: individual companies want to make as...
6 Pages(1500 words)Term Paper

Effect of Monopoly Power

... and price in a complete independent way. In fact, for any given level of price, a monopolist is able to sell only that much amount of output which the market of the product will be able to put up with. If a monopolist chooses a very high level of price, then it would be able to sell only a very little amount of output. Hence, choice of price and output of a monopolist is always constrained by consumers’ demand behavior. However, with increase in the level of monopoly power, the monopolist is able to exercise more control on price. (Perloff, 2009; Varian, 2000) Although firms always want to have some monopoly power, but economists or policy makers of any nation are always worried about monopolistic structure of any market. One of the major...
14 Pages(3500 words)Term Paper

Advantages and Disadvantages of Monopoly in Serving Public or Consumer Interests

...t's viewed from a business point of view it is a way to maximize profits. A definition of Oligopoly is 'when there are a few large suppliers, whose business decisions affect each other.' (BPP Business Organizations, Pg 108) This happens when only a few firms are operating in the market. There are not many producers and a lot of buyers thus the action of one producer could affect the authority of the other one. Though they cannot set up a price of their own as in a monopoly but at times they turn into friendly competitors and work together by forming a Cartel (An agreement between two or more firms in the same industry to co-operate in fixing prices and/or carving up the market and restricting the amount of output the produce.) A...
8 Pages(2000 words)Research Paper

Microsoft Monopoly

...observed by Reynolds (2005). From this time on, reports illustrate that Microsoft has grown in might and fame to rule the world of information technology in modern times. The corporation is currently boasting of a plethora of products and software useful in the world of informatics and computing as cited by Page and John (2009). In spite of this colourful and robust growth attributed to Microsoft, critics argue that the playing field has been lopsided in favour of Microsoft. It is from this argument that the author intends to establish whether Microsoft has monopoly power in the markets for personal computer operating system and whether this power has been maintained by using anticompetitive practices. The essay is divided into the...
8 Pages(2000 words)Term Paper

Regulation of Monopoly and Competition Policy in the UK

...t of borrowing. A lower interest rate is meant to encourage borrowing and hence investment. The government of Pakistan can lower its interest rate which will result in an increase in the money supply and investment. And lastly the government of Pakistan should keep reviewing and adjusting its policies from a time to time basis. It can learn from the policies of the developed and successful nations and accordingly modify and review its policies. PART B Why do some observers criticize companies that have monopoly power in a market while others argue that such power can be beneficial to consumer interests? Then, with reference to a country of your choice, briefly discuss the ways in which the government of that country has introduced...
12 Pages(3000 words)Assignment

The Aspects of Monopoly

On the other hand, pure competition is characterized by a large number of small competitors. The small competitors normally have no market control thus it only acts as an ideal market structure that sets standards for good results in the future.
A firm that is under pure competition may sell as much as it wishes with the current market price as long as it can produce at its original cost. However, the firm may achieve monopoly status due to economies of scale, government decree and resource ownership (Tucker 228).
The emergence of a monopolistic firm is normally influenced by economies of scale and decreased average cost. When a firm finds itself in a monopoly position, its average cost has to reduce overtime thus sellin...
7 Pages(1750 words)Term Paper

Origin of Modern Monopoly State

...by integration or form by a government. In numerous rules, competition laws limit monopolies. However, holding a leading position or the monopoly of a marketplace is not unlawful in itself. But, certain types of behaviours may be considered unlawful and thus incur lawful authorizations when a business is dominant. Monopoly by integration is when two large competing companies come together to form a single entity in order to have more economical dominancy in the market. Thus becoming a monopoly. Additionally, a government-granted monopoly is authorised by the government, and it provides an encouragement to capitalize in uncertain ventures or enhance a...
7 Pages(1750 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