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Journal/magazine article assignment - Essay Example

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A monopolist’s market is characterized by a number of features like barriers to entry, product differentiation and market power (Lynn, Barry). By barriers to entry, we mean…
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Journal/magazine article assignment
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Journal/magazine article assignment

Download file to see previous pages... He is the sole seller of the product and he can make above normal profits, which he usually does, even in the short run. Also, unlike perfect competition, where the products are all identical, monopolist’s products are usually categorized as being different and thus unique. Designer articles can be considered a monopolist’s work since they are all unique and differentiated. This gives the monopolist the right to charge as much as he wills. He can charge much higher than the cost that he pays for the product since his product is unique and there is no other seller, the monopolist is not afraid of competition from somewhere else. Likewise, monopolists usually discriminate the buyers in price too (McKenzie, Richard). We may encounter the same product with different price labels in different places. This right too belongs to the monopolist only.
When we talk about the gains from a monopolist’s market, the most important one is that there is a lot of innovation in the product range. The products are much more creative and newly designed. In most cases, the quality is also not compensated since the monopolist is not afraid of higher costs, he can always transfer those higher costs to the buyers who are bound to pay. Thus the economics of marketing “new and improving” products has much to do with the monopolist’s market than with any other market structure. Here, we mean the economics or the production, distribution and consumption of goods and services that are marketed or promoted as being new and improved version of some good that was available in the market earlier (Hawley, Ellis). For example, laptops such as those by Sony have been some of the most expensive ones in the market since decades. However, whenever there is a new Sony laptop launched we see the same or maybe increased amount of fervor in the buyers. This is because the company has developed some level of ...Download file to see next pagesRead More
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