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

The Big, The Bad, and the Monopoly - Essay Example

Comments (0) Cite this document
Summary
Business comes on all sizes, all market shares, and all variations of horizontal and vertical markets of branding. While Archer Daniels Midland (ADM) has been successful at acquiring profit centers that relate to food products in its 80 year history, Berkshire Hathaway has been more diverse in its holdings…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER95.7% of users find it useful
The Big, The Bad, and the Monopoly
Read TextPreview

Extract of sample "The Big, The Bad, and the Monopoly"

Download file to see previous pages In the ADM case, its size may have been to the detriment of the consumer and taxpayer, while Berkshire may have been an innovator that saved jobs and created economic opportunity. The motives behind the move toward large-scale corporate entities may be suspect, but big business is not the fault. In fact, big business can be a boon and is essential in promoting a healthier economy in today's global marketplace.
Without big business, the world economy could not operate. Take the case of Intel and the development of the microprocessor. Certainly Intel dominated the market for years and has continued to do so. However, the product could not have been developed and manufactured by several smaller companies with the same expertise and cost factor that was available to Intel. Microsoft operating systems and PC manufacturers were quick to limit their source of goods and self promoted a product that consumers demanded. As the decades passed, consumers were treated to greater computing power and greatly reduced cost. Along with these benefits came the necessity of standardization.
Though it seems the threat of monopoly existed, the results indicate otherwise. In the end, manufacturers were dedicated to selling products and not exploiting the marketplace. As Carson, Thomas, and Hecht contend, "Few can deny that product progress and relatively falling prices for most consumer and goods [...] have resulted only from the great capital concentration and large scale marketing strategies of big enterprise" (96). Few consumers would be happy to return to the early days of computing with its multiple operating systems, non-standardization, and inability to transport data across operating system formats. The concentrated big business effort has made the US computing industry one of the world's dominant industries.
The downside of big business shows its force when price and production rates are regulated such that profits are maximized at the cost to the consumer. This, in reality, rarely occurs. The OPEC cartel was an attempt to stem production and raise prices based on a shortage of supply in the 1970s. However, market forces have a way of dealing with monopolistic actions. The North Sea began production and the Soviet Union peaked at 12 million barrels per day making it, a non-OPEC member, the world's top producer ("Supply"). The high price also made new technologies feasible that would have not been economical at the lower prices. These forces combined to increase supply and ultimately reduce prices.
Cutthroat competition is often viewed as a predatory and monopolistic practice. Larger firms, with more capital, may undersell their competition at a loss in an effort to run them out of the marketplace. However, depending on the situation, it is often the smaller and more flexible companies that are able to compete in this environment. "[...] the smaller, more mobile firm, not burdened with heavy investments, that is able to "cut its costs" [...] and outcompete the larger firm. In such cases, of course, there is no monopoly-price problem whatever" (Rothbard).
The government has the power to limit monopolistic practices, though tends to express its power at the political whim of the administration currently holding office (Carson, Thomas, and Hecht, 97). Add to this the factor that there are several government-protected monopolies in existence. The postal service may be ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“The Big, The Bad, and the Monopoly Essay Example | Topics and Well Written Essays - 750 words”, n.d.)
Retrieved from https://studentshare.org/miscellaneous/1507673-the-big-the-bad-and-the-monopoly
(The Big, The Bad, and the Monopoly Essay Example | Topics and Well Written Essays - 750 Words)
https://studentshare.org/miscellaneous/1507673-the-big-the-bad-and-the-monopoly.
“The Big, The Bad, and the Monopoly Essay Example | Topics and Well Written Essays - 750 Words”, n.d. https://studentshare.org/miscellaneous/1507673-the-big-the-bad-and-the-monopoly.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF The Big, The Bad, and the Monopoly

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

... monopolize (Lele, 2007). The company has unlimited market power even influencing how they charge higher prices. This may be confused with the ability to possess or own big businesses. Size is not all the characteristics of a monopoly in an enterprise, because a small business venture may also possess ability control market more than a big and existing companies. Body Characteristics of Monopoly An enterprise that enjoys monopoly exhibits a number of characteristics in the market or economy of operation. First, it maximizes profits. This is a value through the sales of the company’s services or goods to its consumers. For example in most of the third world countries and also in developing economies, most of the services or goods which have...
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

... Monopoly In the economic context, there are different types of interaction. Monopoly is included in the types of interaction occurring in the local and global market. It is the corresponding scenario wherein a certain industry or market has a single or sole participant defined as the seller or the provider of the product or service. Monopoly can be considered as one of the goals of a company due to the fact that it can be equated to control in the market. There are different prerequisites that can determine monopoly in a particular market. One is the presence of a single producer in the said market. Another is the absence of any other company with products or services that can be compared to that offered by the monopolist...
8 Pages(2000 words)Report

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

My Big Fat Greek Wedding

...An Analysis of Speech Acts in the Film “My Big Fat Greek Wedding” This research investigates speech acts performed in the romantic comedy film “My Big Fat Greek Wedding” (2002). Written by Nia Vardalos and directed by Joel Zwick, the movie portrays the cultural, personal and family conflict of Toula Portokalos, a Greek-American woman, when she falls in love with an American man, Ian Miller, who has no relationship with the Greek culture. The humor in this movie is based on the intercultural differences between the American way of life and the Greek family, and Toula’s distance from a world in which she thinks she does not fit. The present project aims at analyzing the types of speech acts, the illocutionary points and the request strategy...
16 Pages(4000 words)Movie Review

The Behavioral Science Disciplines, Big Five Personality Model

... the “Big Five” and how they help in predicting behavior at work. The “Big Five” is also known as Big Five Personality Model which seeks to understand the variation in human personality. This consists of Big Five factors or traits namely: Extraversion, Agreeableness, Conscientiousness, Emotional stability and Openness to experience. Extraversion tries to understand an individual’s comfort level with relationships. Agreeableness is a measure of individual’s ability to agree or effectively work with others. Conscientiousness measures how reliable a person is. Emotional stability tries to understand a person’s ability to stay calm amidst the distracting effects of stress. And finally, openness to experience is a measure of how open...
9 Pages(2250 words)Assignment

Microsoft Monopoly

The corporation is currently boasting of a plethora of products and software useful in the world of informatics and computing as cited by Page and John (2009). In spite of this colorful and robust growth attributed to Microsoft, critics argue that the playing field has been lopsided in favor of Microsoft. It is from this argument that the author intends to establish whether Microsoft has monopoly power in the markets for personal computer operating systems and whether this power has been maintained by using anti-competitive practices. The essay is divided into the sections discussed hereunder.
From the economics perspective, monopoly is taken to refer to “a market in which there are many buyers but only one seller&rdqu...
8 Pages(2000 words)Term Paper

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

Big Box Stores Vs Mom and Pop Stores

Managers and owners of small stores argued that national retailers were able to offer cheaper prices since they bought items in bulk amount and also that the reach of these national retails allowed them to offer a wider range of products. It was also observed that when big-box stores opened up their stores in a new locality, several small stores were forced out of business. In this paper, an attempt has been made to understand the impact of big-box stores on mom-and-pop shops and whether the criticism against big box stores is valid.

Big box stores as defined by Barry, Evans and Mathur, 2011 are discounters with stores between 50,000 and 200,000 square feet, single-story buildings, and strategies based on high volume v...
8 Pages(2000 words)Case Study

Does Charles Bukowski Deserve a Bad Reputation or Does His Work Have some Redeeming Value

... Bukowski, being a misanthropic person (as it seems from his poetry) crosses this line with no regret. This is inappropriate for a writer, specifically when it comes to the one who writes preferably about his daily-life experiences as Bukowski does. Thus, the works written by him deserve the criticism from people, even though some of them have a few philosophical ideas. In other words, Bukowski deserves a bad reputation on him, not only for his indecent lifestyle, but also for his inappropriate delivery style, in which he does not care about the words he chooses. Bukowski’s works are worth more than they receive credit for in modern times owing to the die-hard fans of Bukowski’s works. It is irrational to give Bukowski a bad reputation...
6 Pages(1500 words)Research Paper

Classic David vs. Goliath: Are Big Corporations Driving away Neighborhood Shops

Struggling to keep afloat, many have either sold their businesses, had to drastically change their business model, or have gone out of business altogether. While there may be some validity to the notion that large corporations are slowly causing the demise of small businesses, the American public can be seen as partly to blame for this modern-day phenomenon as well.

Many wonders if competition in the marketplace should be fair, or whether the business mentality in America should be seen as survival of the fittest were the one with the most customers and the biggest revenue wins. The free enterprise system prides itself on giving the consumer a choice. In addition, the system itself is designed to give anyone a chance of...
10 Pages(2500 words)Research Paper

Oil Companies: Do Oil Companies Get Big Bucks While the Rest of Us Pay $3 a Gallon

... with the company hiring practices. The oil companies have a bad reputation of not hiring citizens of the country they operate in, but instead they bring in their own personnel to run operations; this is to prevent public criticisms because they are aware that they are exploiting the host country and their people. Those who get an opportunity to work with the foreign oil companies are employed in unskilled positions like security guards, cooks, and janitors, but they do not place the local people in influential positions (Falola 66). 4. Oil companies are making big bucks while the rest of the world is paying $3 a gallon Oil companies have been reported many times due to the continued hiking of oil prices, while the rest of the world...
6 Pages(1500 words)Research Paper

NASA Budget Cuts: Bad for America

... of the English of the Teacher 27 April NASA Budget Cuts - Bad for America In the recent times, a significant section of theAmerican population has come to think that investing resources and money in the space program does not need to be a government priority. Such views do pose many problems for NASA. The thing is that the political class acts a lot in consonance with what the masses think. Thereby the proliferation of the belief that money should not be spent on space programs could lead to significant cuts in the funding of NASA. Going by the current funding of NASA, the organization is already not in a position to finance many of its cherished projects. For instance the much famous mission to Mars is already in a danger...
10 Pages(2500 words)Case Study

Is Genetically Modified Food Good or Bad for Human Consumption

...Is Genetically Modified Food good or bad for human consumption? "Almost any scientific discovery has a potential for evil as well as for good; its applications can be channelled either way, depending on our personal and political choices; we can’t accept the benefits without also confronting the risks." - Martin Rees, President: The Royal Society (2005) Introduction: Genetically modified food highlights the giant leap of mankind in the field of science and technology that enables researchers to control and at times go against the laws of nature, to manufacture food through ways and processes which goes beyond the realm of possibility or reason. Food thus created has managed to garner interest worldwide and met with a range...
8 Pages(2000 words)Case Study

How Big Food Companies Are Corrupting the SNAP Program

... How big food companies corrupt the SNAP program There is no doubt that SNAP provides an essential service designed to help our nation’s poor but is it helping the less fortunate, or is it creating fortunes for some? Due to economic conditions, many people rely on these supplemental nutritional benefits from the Government. Equally, large companies are also relying on these benefits for their profits. However, big corporations and lobbyists who benefit from them also exploit the programs that are intended to help the poor. The programs that intended to support the poor in our country have always benefited the food producers. In the beginning, this made sense because the country was going through the great depression, farmers could...
6 Pages(1500 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 Big, The Bad, and the Monopoly for FREE!

Contact Us