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

Monopoly and Competitiveness - Research Paper Example

Comments (0) Cite this document
Summary
It is assumed in such case that all firms and households are price-takers, i.e. no participant can influence the price. In such a market there are many firms which are relatively smaller than the market size and the goods produced by all the firms are homogeneous…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER96.5% of users find it useful
Monopoly and Competitiveness
Read TextPreview

Extract of sample "Monopoly and Competitiveness"

Download file to see previous pages 2. Competition- a perfectly competitive firm has no control on the competition as the entry and exit of new firms is not restricted. However a monopolist firm being dominant in its market can create entry barriers for new firms.
3. Supply and demand curves- a perfectly competitive firm faces a horizontal demand curve and an upward sloping supply cure. While in the case of monopoly firm it faces a downward sloping demand curve and its supply curve is dependent on the marginal cost and marginal revenue (as seen in the graph below).
4. Profit- maximizing output- a perfectly competitive firm maximizes its profit at the point where its marginal cost equals marginal revenue which in turn is equal to the equilibrium price. Whereas a monopoly firm maximizes its profit at the point where marginal revenue equals marginal cost and vertically locates the supply quantity on the demand curve (as seen in the graph below).
A2. Schumpeter has tried to elaborate and improve the definition of monopoly. The term has been misinterpreted and misunderstood continually. It is regarded as a taboo which equals to oppression and savage exploitation of resources. But it is important to understand that monopoly evolves mainly due to the large-scale structure of a business. This in turn is achieved by hard work and outstanding performance. Though he does not deny that there have been instances when the production is not improved despite the large-scale domination of the monopoly but this is not enough for backing up the common generalization associated with the term.
According to him a single-seller position gained by either patent or monopolistic strategy can not be termed as exploitation as in most cases they are innovators. They bring in the new commodities and build their markets.
In the case of perfect competition, where the market forces in equilibrium are disturbed by some external factor, then under old views it is assumed that the market itself reaches the new equilibrium. But in reality it might take the market farther than the new equilibrium than stabilizing it. Another common notion about the perfectly competitive market is that, it is free of wastage of resources and inefficiencies. This in fact tumbles when considering the fact that a large-scale business can produce a similar product with the same resources but with improved technology, quality, usability etc. and these are the reasons for why it charges a ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Monopoly and Competitiveness Research Paper Example | Topics and Well Written Essays - 1250 words”, n.d.)
Retrieved from https://studentshare.org/miscellaneous/1505817-monopoly-and-competitiveness
(Monopoly and Competitiveness Research Paper Example | Topics and Well Written Essays - 1250 Words)
https://studentshare.org/miscellaneous/1505817-monopoly-and-competitiveness.
“Monopoly and Competitiveness Research Paper Example | Topics and Well Written Essays - 1250 Words”, n.d. https://studentshare.org/miscellaneous/1505817-monopoly-and-competitiveness.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Monopoly and Competitiveness

The Role of Globalization in the Development of Firms Competitiveness

The power of firms within their local market defines their potential to compete effectively the other firms that operate within the same sector in the international market. The fact that despite the existence of many multinationals, local firms have often more powerful presence within the market of a specific country that supports the above view. As an example, we could refer to the supermarket industry and the case of UK where Tesco, a firm that is well expanded across the country dominates the country’s relevant market despite the fact that there are other firms within the same market that have become international, like the case of Marks and Spencer. Indeed, in accordance with a series of current data (the most current av...
10 Pages(2500 words)Term Paper

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

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

Porter's Diamond of National Competitiveness

...To what extent does Porter’s model of national competitive advantage adequately account for variations in national business systems and comparative economic performance? Are other approaches or ideas required? 1. Introduction Porter’s theoretical postulates on national competitive advantage have been critically scrutinized by many authors. Among them Egan (1995) suggests that Porter’s focus on a specific country’s success in international trade in one particular industry is of importance due to the fact that there is the indefatigable enunciation of the often lofty ideal that the customer comes first. This paper examines Porter’s emphasis on the four determinants (the Diamond) of the national competitive advantage, viz. (i...
9 Pages(2250 words)Assignment

Microsoft Monopoly

...-competitive practices In an effort to defend its position in the market, Microsoft is blamed for engaging in anti-competitive practices in order to maintain the hard earned monopoly powers. Friend and foe alike have accused Microsoft of using exclusionary policies in dealing business according to views proffered by Michael (2001). In marketing sense, exclusionary practices are considered in relation to the practice of monopolisation which, as indicated in the foregoing paragraphs exists between existing firms and new entrants in most cases but at times between existing firms (William and John, 1999). Further reports clarify that exclusionary practices compose predatory pricing, strategic investment, bundling and tying, incompatibility...
8 Pages(2000 words)Term Paper

The Competitiveness among Unilever and Proctor and Gamble

...1.1 Introduction Unilever mainly focus on personal care, foods and home care business. Proctor and Gamble is the first largest consumer goods company and Unilever is the second. Unilever operates through seven segments i.e. exports, foods, beverages, soap, detergents and personal products. While P&G business segments include fabric and home care, feminine, heath care, beauty care, beverages and food. Therefore there exist vast differences in the management of both the companies. The main objective of this paper is to study the competiveness among Unilever and Proctor and Gamble in the light of Henry Fayol’s 14 principles. It also focuses to identify the differences and similarities among these two companies. 1.2 Unilever... Introduction...
8 Pages(2000 words)Term Paper

Strategic Management Competitiveness and Globalization

Apple pursues to build a sustainable business and create value for both the company and its stakeholders. Apple has had remarkable success in discursive innovation through the employment of more resources, models, and tools to aid the company to innovate continuously. The paper analyzes Apple Inc.'s profile and explores its pursuit of sustainability in its operations.

Apple is a reputable company that sells its products to consumers, small and middle-sized businesses, education, enterprise, creative markets, and government, besides providing hardware and software products and solutions for clients within the information technology and scientific markets. The company has demonstrated willingness to bring the best user e...
6 Pages(1500 words)Case Study

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

Evaluation of the Competitiveness of the Samsung and Apple

...Evaluation of the Competitiveness of the Samsung and Apple Introduction Almost all the people talks about Apple and very few people talk about Samsung. To play the game of the Apple which Samsung is trying to do is very hard. The two brands are locked up in a very big battle; as Apple holds the lead in the market share of the U.S. by a margin of about 42% to 29%, Samsung have a similar lead in the international markets. Apple has made its products a necessity for every person who would wish to remain relevant in the culture of today as they try to dominate the conversation about digital connectivity. The company of Samsung has also tried to battle it out against its major competitor for cultural relevance. Apple may win at innovation...
7 Pages(1750 words)Case Study
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 Research Paper on topic Monopoly and Competitiveness for FREE!

Contact Us