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.
Nobody downloaded yet

Form of market structure: Monopoly - Essay Example

Comments (0)
Summary
In the paper “Form of market structure: Monopoly” the author analyzes the article regarding this economic concept “Monopoly” written by George J. Stigler. The paper highlights the key points of the article along with its relation to the basic economic concepts…
Download full paper
GRAB THE BEST PAPER
Form of market structure: Monopoly
Read TextPreview

Extract of sample
"Form of market structure: Monopoly"

Download file to see previous pages Therefore, the customers are worse off as they have to pay more while the monopolists benefit along with their employees.  For the economists, on the other hand, the objection against monopoly is that the economic welfare of the entire society is reduced as opposed to separate groups of customers and suppliers. This is because when monopolists raise prices, customers respond by buying less of the products and this result in reduced economic welfare.  During the 17th-18th century, it was believed that all monopolies would be broken by the entrance of competitors in the market except those supported by the government. The governments tried to keep the competitors away from these monopolies through the introduction of certain policies and measures. Even today, many monopolies are dependent on government policies especially in the United States. Monopolies existing without favorable government policies are due to the smallness of markets rather than polices.  Other reasons for the existence of monopolies include some new technology or innovations in the market. Today, economists try to restrain the government from granting exclusive rights and privileges.  Another key point in this article is that the concept of a monopoly is changing as economists have come up with new terms such as oligopoly and monopolistic competition. Traditionally, monopoly was thought of as a single supplier with few rival competitors. However, today the economists are viewing the concepts of competition and monopoly differently. The new concepts of perfect competition and oligopoly are gaining support due to the benefits of competition for the society as a whole.
In this article, two major economic concepts have been used including demand and supply as well as various forms of market structures. The concept of demand and supply in relation to this article could be understood with the help of an example. A monopolist fixes a price over and above the fixed costs of production of the company. If the fixed cost is $10 then the monopoly would charge higher than $10 to make a profit. However, the increased price may lower the demand and hence, the profit for the company. If the demand at $10 is 300 then the revenue for the monopoly would be $3000. If the price is $7 and demand is 400 then the revenue is 2800 and so on. This example shows the basic premise of the demand function that an increase in price would reduce demand. In contrast, a higher price would motivate other suppliers to supply more to gain more revenue.
Market structures include the characteristics as well as the composition of business entities. These structures, as stated above, include ...Download file to see next pagesRead More
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Market monopoly and Oilygopoly market
The author of the essay comments on the concepts of micro economics and macro economics. To be precise, the author provides the idea of Samuelson, who states that economics is the study of how societies use scarce resources to produce valuable commodities and distribute them among different people.
4 Pages(1000 words)Essay
Market structure
These describe the main aspects of markets such as the products sold, the number of firms, and ease of entry and exit. The different market structures include: perfect competition, monopoly, monopolistic competition, and oligopoly. A perfectly competitive market is characterized by various features which in most cases are not found in a real world but are used as benchmarks for other markets.
7 Pages(1750 words)Essay
Monopoly and Monopoly Power in Microeconomics
This essay puts 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 are the topic of analysis. A market structure that does not satisfy the assumptions of perfect competition is regarded as the market of imperfect competition.
6 Pages(1500 words)Admission/Application Essay
The monopoly market structure
As it is shown in the essay, monopoly is a market structure where there is a single producer or seller of the product in the market with no substitutes available. The paper focuses on uncovering of the relative inefficiencies of the monopoly market, compared with other structures. This market produces less output with higher prices.
8 Pages(2000 words)Essay
Market Structure
Arguably, there are varied market structures in every market and their characteristics in presenting quantity and imposing prices upon the units affect consumption patterns and the buyer and seller relationships. For example, perfect market competition, oligopoly, monopoly, and monopolistic competition vary broadly in terms of the market outcomes under the practices of the coinciding factors of demand and supply (Martin, 2012).
8 Pages(2000 words)Essay
Monopoly Market Structure
Under free trade environment the market itself fixes the price whereas in the Monopoly structure the monopolist being the only supplier fixes the price at which goods or services will be provided. In the monopolist market structure there are no close substitutes to the product or service the monopolist deals with and there are different barriers to enter the market.
4 Pages(1000 words)Essay
Main differences between perfect competition and monopoly market structures
The perfectly competitive market structure is very difficult to achieve and is, therefore, compared as the benchmark for other forms of market structure. The characteristic features of a perfectly
4 Pages(1000 words)Essay
Market Structure
Economics helps people to understand the politics and business aspects among others. At the same time, it also helps to understand the needs and demands and along with that it helps to choose the best allocation of the resources from various
10 Pages(2500 words)Essay
Market Structure
Market Structure is an imperial study in Micro economics that may be defined as a collection of interdependent factors which determine the level of interaction between buyers and sellers prevailing in the market and adjust price and output level according to the interrelationship between them. In particular, market structure demonstrates the number of firms producing identical and homogeneous goods and services
14 Pages(3500 words)Essay
Monopoly market
Due to increased economic growth globally, many firms have taken the opportunities in the global markets to sell their goods and services. Through numerous improved global infrastructures, firms have an opportunity to produce more goods and services as well as
5 Pages(1250 words)Research Paper
Let us find you another Essay on topic Form of market structure: Monopoly for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us