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 and Disadvantages of a Monopoly - Term Paper Example

Comments (0) Cite this document
Summary
Market structures are depicts difference in conditions or characteristics of a given market, which interrelate to determine the degree of profitability and competition in a given market in the economy (Tragakes, 2011). Different market structures resulting from different market…
Download full paper
GRAB THE BEST PAPER
Advantages and Disadvantages of a Monopoly
Read TextPreview

Extract of sample
Advantages and Disadvantages of a Monopoly

Download file to see previous pages... The characteristics of a monopoly include the presence of one seller and many buyers in the market, resulting in the seller having total market power on quantity and price. In a monopoly market structure, there are no close substitutes for the good or service supplied by the monopoly resulting in consumers having to purchase at the set price by the monopoly, and lack of perfect information for the consumers (Tragakes, 2011). The other characteristic of a monopoly is presence of high entry barriers caused by factors including high capital requirement, natural causes, and ownership of production resources by the firm. Microsoft ownership of the windows operating system brand is an example when monopoly results from the ownership of a scarce resource in the economy. The other reasons for the high entry barriers in a monopoly include Government Issue of one license and ownership of patent rights for production. The other characteristics in a monopoly market face inelastic price elasticity of demand owing to lack of substitutes and consumers have to purchase at prices set by the monopoly allowing for abnormal profits (Tragakes, 2011). Monopoly, therefore, produces low quantity and sells at a high price. Examples of monopoly include Feet-First Pharmaceutical and power supply firm in a country where there is only one operating license provided by the government. Royal Mail Group was until 2006, a monopoly for the presence of only one operating license but was opened for competition to ensure efficiency in service delivery (Samuelson & Stephen, 2012).
Monopolies have certain advantages in the economy owing to the characteristics of the market they operate. The advantages include stability of the monopoly in terms of changes in economic terms such as a recession. A monopoly consists of one large firm that supplies a product to the entire market owing to high resource ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Advantages and Disadvantages of a Monopoly Term Paper”, n.d.)
Retrieved from https://studentshare.org/macro-microeconomics/1666577-advantages-and-disadvantages-of-a-monopoly
(Advantages and Disadvantages of a Monopoly Term Paper)
https://studentshare.org/macro-microeconomics/1666577-advantages-and-disadvantages-of-a-monopoly.
“Advantages and Disadvantages of a Monopoly Term Paper”, n.d. https://studentshare.org/macro-microeconomics/1666577-advantages-and-disadvantages-of-a-monopoly.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Safety Awards Programs, Advantages and Disadvantages
However, safety awards programs are faced with oppositions for reasons such as cost and effectiveness. One has to understand that an effective and solid safety program can save companies big amounts of money. According to the National Safety Council (NSC), if a safety program is successfully implemented in a company, it minimizes impact on productivity due to injury reduction, lowers premium rates on insurances, and reduces compensation expenses for injured employees (2005).
6 Pages(1500 words)Term Paper
Advantages and disadvantages of social networking sites
Since the beginning, social networking sites (SNSs) such as Facebook, MySpace, Bebo, Cyworld, LinkedIn and others have fascinated millions of users, a number of whom have incorporated these networking sites into their every day life.
4 Pages(1000 words)Term Paper
The Potato Chip Industry
eller in the market is known as the monopolist who is known to be the price maker enjoying complete control over the process of supplying commodities to the market (Armentano, 1978). The case which is being concentrated in this research paper is of the potato chips company
6 Pages(1500 words)Term Paper
Monopoly
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 monopolize (Lele, 2007).
8 Pages(2000 words)Term Paper
Industrial and scientific revolutions in europe. advantages and disadvantages (+/-)
volution was no mere sequence of changes in industrial techniques and production, but a social revolution with social causes as well as profound social effects” (Perkin, pp. ix). Studies have indicated that Europe observed a dramatic alteration in its structure due to
1 Pages(250 words)Term Paper
Google Monopoly
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
5 Pages(1250 words)Term Paper
Competition-MicroEconomics
Monopoly relates to a market situation in which only a single seller of a particular product in the industry. Absence of competition, barriers to entry, imperfect information, price makers and
7 Pages(1750 words)Term Paper
Advantages Of Monopoly
A monopoly is a market in which only one company participates (Varian). An example of a monopoly is local utility companies. An advantage of a monopoly is that the firm does not face competition since they are the only participant in
3 Pages(750 words)Admission/Application Essay
Advantages and disadvantages of the FairTax Act
Currently, most U.S companies use the new accounting standards in their foreign subsidiaries. Introducing the new proposals may require system upgrade depending on the final method or process used in
3 Pages(750 words)Term Paper
Advantages and disadvantages of the FairTax Act
On this basis, different types of taxations are imposed depending on the target source. For instance, income taxes to individuals and corporate, gift taxes and social security taxes. On the other hand, the remittance of tax income on fair tax
3 Pages(750 words)Term Paper
Let us find you another Term Paper on topic Advantages and Disadvantages of a 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