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

Advantages Of Monopoly - Admission/Application Essay Example

Comments (0)
Summary
The four major market structures are monopoly, oligopoly, monopolistic competition, and perfect competition. This paper will concentrate…
Download full paper
GRAB THE BEST PAPER
Advantages Of Monopoly
Read TextPreview

Extract of sample
Advantages Of Monopoly

Download file to see previous pages... Monopolists have the ability to generate economic profits in the long run because the firm has greater control over variables that affect the marketplace.
The monopolist has market revenues that are below its equilibrium price. Output is restricted in a monopoly to obtain the price point that optimizes revenues. The barriers of entry into a monopoly are high. A barrier of entry can be defined as the existence of high start-up costs or other obstacles that prevent new competitors from easily entering an industry or area of business (Investopedia). A way for a company to create a monopoly is through innovation. An innovative company can create a new product and patent this product. A patent creates a monopoly that allows the firm holding the product for a maximum of 20 years of protection. An example of an industry that often uses patents to protect its products is the pharmaceutical industry. Often pharmaceutical companies abuse their monopoly power by charging outrageous prices for prescribed medicines. The justification to charge a high price is the fact that these companies incur in very high research and development cost to bring a new drug into the marketplace. “The average cost of bringing a new drug to market is $1.3 billion” (Herper).
In a monopoly the firm has greater control over due to the non-existence of competition. The customer has no option but to pay whatever price the monopolist establishes. There is no price elasticity of demand in a monopolist. The marginal revenues equal the marginal cost in a monopoly market structure. The monopolist controls price and is not dependent on the market determining price as in other economic market structures. Despite the fact that the monopolist controls price it does not make it immune to the law of supply and demand. The demand curve of a monopolist is downward slopping. A monopolist is able to achieve economic profits in the long run due to its control over factors or variables that affect ...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
The United States assuring national stability while maintaining an international presence
In the past two decades however, China has began to rise in both military and economic strength. What once was a hegemonic power in the world, the United States has started to see an eroding by eastern ideology. China is not only able to manipulate the yen, but also able to hold control over the business sectors via way of the government.
8 Pages(2000 words)Admission/Application Essay
Production, Costs, and Profits
Economists usually consider the implicit costs and explicit costs of operating, often called as opportunity cost, while accounting cost do not count the explicit costs of the owner. Ralph Bryns, 2011 argues that a business becomes profitable in the overall perspective when a firm’s revenue exceeds the explicit and implicit costs.
4 Pages(1000 words)Admission/Application Essay
The Economy, Monetary Policy and Monopolies
The US is experiencing weak economic growth, unemployment, and stock market instability, which are raising serious concerns about the state of US economy. The continuing challenges in the labor market and the account of the debt limit emphasize the problem faced by the state; unsustainable debt mount for the future.
3 Pages(750 words)Admission/Application 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
A Polite Question about Turf
While we shall have to hold periodic strategy meetings over the next weeks in order to work out the details of our cooperation, I would like to take this opportunity to respond to your concerns and communicate my assurances regarding my department's respect for your department, its turf and responsibilities.
4 Pages(1000 words)Admission/Application Essay
US History 1865 to Present
between big business, government, and American working class during the late 19th and early 20th century was one where the government and businesses worked together in exploiting the American working class, through programs, policies, and activities that concentrated wealth and
9 Pages(2250 words)Admission/Application Essay
Dunkin Donuts
The determining factors of the supplier power are the ability of the firm to produce unique products. The second determining factor is the service provided to the customers, which may determine the reaction customers will show after receiving
3 Pages(750 words)Admission/Application Essay
Monopoly
This refers to a market structure with many sellers and buyers with sellers being price takers and has no control over prices and quantity (Hirschey 123). The equilibrium price and quantities
2 Pages(500 words)Admission/Application Essay
Monopolistic Competition
This competition as a market competition was first identified by American economist Edward Chamberlin and also by Joan Robinson who was an English economist, in 1930s (Brakman & Heijdra, 2011 p. 13). a) Products’ physical differentiation: where size, design,
3 Pages(750 words)Admission/Application Essay
Microeconomics
(2) Network effects-this is the effect of great number of people using a specific good in the market. The incumbents create a strong network that makes it difficult for new entrants to join. (3) Ownership of a scarce resource- an
1 Pages(250 words)Admission/Application Essay
Let us find you another Admission/Application Essay on topic Advantages Of 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