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

The Monopoly Of Wonks - Essay Example

Comments (0) Cite this document
Summary
(2003).A market is condition whereby a potential seller of a commodity meets a potential buyer and a means of exchange is available. We have several types of market structures namely; perfect competitive, monopoly, oligopoly, and monopolistic competition…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER98.5% of users find it useful
The Monopoly Of Wonks
Read TextPreview

Extract of sample "The Monopoly Of Wonks"

Download file to see previous pages This will enable the firm to fund high cost capital investment spending. Successful research may be used to improve on products and lower cost in the long-term.
The government will have a chance to regulate different varieties of products at the same time to prevent exploitation of the consumers by the firm. This will save the government spending on check-ups.
The government will also be able to tax the company easily. The government gets much tax revenue in the monopoly companies than in monopolistic competition. In the monopolistic market are free to enter and leave at any time since there are no legal barriers. Lack of restrictions demolishes government effort to collect tax revenue from all the stakeholders.
Consumers are likely to buy chips in lower prices since Wonks will be enjoying economics of scale, its production cost will lower transferring this to consumers by charging less cost per unit of potatoes sold.
Wonks Company will be a price-maker, since it makes its own pricing and output decisions. In the end, the price of a product will be determined by its cost function, demand, its objectives and certain government regulations.
The main objective, which leads Wonks to merge as one firm, is to maximize profit. i.e. T.C.< TR. The first thing Wonks company needs to consider is the revenue to earn when it operates as a monopoly firm. The marginal revenue, which is change in total revenue that occurs as a firm, changes its output.
It is expected that in long run, Wonks chips company will increase its output since there are no other players in the market. If it does so, it has to lowers the price. As a result, marginal revenue will be below its price.
Perloff, Jeffrey M. (2004). If marginal revenue is greater than marginal cost, i.e. M.R>MC, the firm will increase profit by increasing output. If marginal revenue is less than marginal cost (M.R ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“The Monopoly Of Wonks Essay Example | Topics and Well Written Essays - 1500 words”, n.d.)
The Monopoly Of Wonks Essay Example | Topics and Well Written Essays - 1500 words. Retrieved from https://studentshare.org/macro-microeconomics/1595086-the-monopoly-of-wonks
(The Monopoly Of Wonks Essay Example | Topics and Well Written Essays - 1500 Words)
The Monopoly Of Wonks Essay Example | Topics and Well Written Essays - 1500 Words. https://studentshare.org/macro-microeconomics/1595086-the-monopoly-of-wonks.
“The Monopoly Of Wonks Essay Example | Topics and Well Written Essays - 1500 Words”, n.d. https://studentshare.org/macro-microeconomics/1595086-the-monopoly-of-wonks.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF The Monopoly Of Wonks

Wonks: Monopolistically Competitive Market to Monopoly

...?There are a lot of advantages for that a firm can exploit from changing market structure. These advantages are beneficial not just for the firm itself, but all the stakeholders have something to benefit from it. However, there are also certain disadvantages that a firm and its stakeholders have to go through once a firm changes its market structure. In this case, the firm structure has changed from monopolistically competitive to monopoly. After the successful takeover of the potato chips industry, a new firm called “Wonks” has taken over the operations of the entire industry and changing the market structure from monopolistic competition to monopoly. Monopolistic Competition is a situation characterized by large number of buyers...
3 Pages(750 words)Research Paper

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 industry of computers.The lawmakers came out with facts...
2 Pages(500 words)Essay

Monopoly

...? Monopoly 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. In a market setting, monopolies a thus characterized by a lack of economic competition (McKenzie& Lee, 2008). This is when, in a company’s production of goods and services, they face little if any viable substitute goods. A monopoly is a single seller in an economic setting whereby the company rises to gain monopoly with accruing the power to exclude competitors or raise prices of their commodities hence the term...
8 Pages(2000 words)Term Paper

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

...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 rapidly in 1867 when diamonds were...
4 Pages(1000 words)Essay

Monopoly

... 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...
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

... 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 all their treasure in heaven should they want...
1 Pages(250 words)Coursework

What Are The Main Causes that Lead to Monopoly

...The inhabitants of the planet live in a world in which market structures determine the behavior of the economic activity of society. There are four market structures: perfect competition, monopolistic behavior, oligopoly, and monopoly. A monopoly is a market structure in which one firm makes up the entire market (Colander, 2004, p.264). If one firm controls the marketplace it means competition is non existent. In such a market structure the firm has control over the output produced or the price point of the product or service being rendered. The most common industry in which monopoly takes place is in the public utility industry. This paper analyzes monopoly by emphasizing in the factors that lead to manifestation of monopoly...
7 Pages(1750 words)Assignment

Is Microsoft really a Monopoly

... A Study of Monopoly: Microsoft About Microsoft: Microsoft Corporation: a multinational company that was started in over thirty years ago. The company mainly deals with manufacturing, developing, licensing, and support of a number of different software products for computing. The company’s headquarters is located in Washington, U.S.A. Microsoft is one of the most trusted companies for computing products. The biggest and best selling product of the company is the operating system – Microsoft Windows and the Microsoft Office, which is almost used by most of the computer users. The company rose to become the dominating system used within the operating system. It was in the mid 1980s that the company introduced the Window operating...
12 Pages(3000 words)Term Paper

Imperfect Markets - Oligopoly and Monopoly

...3 Short Essays Submitted By: XXXX Number: XXXX XXXX of XXXX Number of words: (2225 Excluding Bibliography) Question 1: The majority of markets fall under the realm of imperfect competition, namely monopolistic, oligopoly and monopoly. Compare any two of them by referring to their assumptions, market conditions and strategies and give a few examples. Answer: (584 words) Oligopoly: Oligopoly is a market structure where the market consists of a few firms. This is mainly to allow for the barriers to be erected and so that there is a barrier for entry of new firms and competition. The various products that are provided by firms in this type of markets are either differentiated or undifferentiated. There are two major factors...
9 Pages(2250 words)Assignment

Types and Drawbacks of Monopoly

... Microeconomics-Monopoly Introduction Monopoly is a hot debated topic in microeconomics because of the wide impacts it can contribute to the economy of a country. It is a condition in which only a single firm controls the entire market without having much competitions for their goods or services. Monopoly may be a ploy usually big organizations are utilizing in order to reduce competition from small firms. In monopolistic markets, it is difficult for small firms to survive because of the immense financial capabilities and other resources of the firm which controls the market. The big organizations may have always huge financial resources which they will utilize to destroy the small firms. The main advantage of a monopolistic firm...
6 Pages(1500 words)Term Paper

Effect of Monopoly Power

...Monopoly Introduction When there exists only one firm in an industry, then the industry is categorized as “monopoly”. If an industry is composed of only one firm, then the firm behaves in a very unlikely way than it would have done, had it been in a perfectly competitive industry with numerous firms. It is quite unlikely for the monopolist producer to take market price as given. A monopolist firm has certain market power with the help of which the firm can influence the market price. Exercising its power on market price, a monopolistic firm chooses its output level and price of the product in such a way that its profit is maximized. (Perloff, 2009) It is, however, not the case that, the monopolist is able to choose the level of output...
14 Pages(3500 words)Term Paper

Advantages and Disadvantages of Monopoly in Serving Public or Consumer Interests

... The definition of Monopoly is 'it exists when there is only one supplier of a product or service' (BPP Business Organizations, Pg 106). This essay would discuss a monopoly, the factors which affect it and how these factors tend to change both the supply and demand of products in the market. It would further conclude if monopoly is the working suitably for this society or not. Introduction The definition of Monopoly is 'it exists when there is only one supplier of a product or service' (BPP Business Organizations, Pg 106). Pure monopoly exists when a single firm is the sole producer of a product for which there are no close substitutes. If a pure monopoly is viewed from a consumers point it is quite undesirable, while...
8 Pages(2000 words)Research Paper

Microsoft Monopoly

...Word Count excluding Bibliography: 2136 Topic: Does Microsoft have monopoly power in the market(s) for personal computer operating system? If yes, did Microsoft maintain this power by using anticompetitive practices? Introduction The name Microsoft was probably coined from microcomputer software and refers to a worldwide corporation that primarily started as a personal computer (PC) software development corporation for IBM-and-compatible microcomputers (Meese, 1999). Published information further indicates that the corporation was incepted sometime in 1975 before incorporation in 1981. It is at this time when the integrated company developed “a command user interface (CUI) operating system (OS) called Disk Operating System (DOS...
8 Pages(2000 words)Term Paper

Regulation of Monopoly and Competition Policy in the UK

... is then necessary to place price controls especially on utilities like telecommunication, gas, rail transport and electricity. How does state intervene? There are many different ways in which the state intervenes in the functioning of the free market forces. The most common of these is through government regulation and legislation. The government wants to encourage the production of merit goods and discourage the production of demerit goods by the private sector. There can be laws passed which restrict the production and selling of demerit goods like cigarettes or alcohol, laws that would ban smoking in public places. Furthermore there could also be laws against the formation of monopolies under the competition policy of the government...
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

...Origin of Modern Monopoly State Monopoly exists when a particular enterprise or person is the only distributor of a specific commodity. Therefore, monopoly is characterized by lack of competition economically in the production of services and goods and absence of viable substitute products. Additionally, the verb monopolises speaks of the process through which an organization gains the capabilities to raise its prices in order to eliminate competitors. Thus in economics, a monopoly is termed as a single seller. Furthermore, monopolies may possibly be big businesses but size is not a feature of monopoly. Small companies might still have power to increase its prices in a small market or industry. Monopolies can form naturally, form...
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 Essay on topic The Monopoly Of Wonks for FREE!

Contact Us