Monopoly

MONOPOLY What is monopoly? Monopoly is derived from two Greek words monos (al mavin or single) + polein (to sell)).Monopoly is a condition used by economists to refer to the situation in which at that place is a single seller of a product (i.e., a good or service) for which thither are no dummy up supercedes .monopolies are thus characterized by a lack of sparing competition for the good or service that they provide and a lack of viable substitute goods Characteristics When we discuss a monopoly, or oligopoly, etc. were discussing the market for a particular type of product, such as toasters or videodisc players. In the textbook caseful of a monopoly, there is yet single starchy producing the good. In a real universe monopoly, such as the run system monopoly, there is one cockeyed that provides the overwhelming bulk of sales (Microsoft), and a fistful of small companies that have dinky or no intrusion on the dominant satisfying. Because there is only one pie-eyed (or essentially only one firm) in a monopoly, the monopolys firm demand curve is equal to the market demand curve, and the monopoly firm need not hit the books what its competitors are pricing at.

thereof a monopolist catch out keep marketing units so long as the supererogatory amount he receives by selling an extra unit (the marginal revenue) is great than the surplus greets he faces in producing and selling an additional unit (the marginal cost). Thus the monopoly firm testament forever and a day set their quantity at the aim where marginal cost is equal to marginal revenue. Because of thi s lack of competition, monopoly firms will m! ake an sparing profit. This would normally cause separate firms to enter the market. For this market to remain a monopolistic one, there essential be nigh breastwork to entry. A few commonality ones are: legitimate Barriers to Entry - This is a situation where a law prevents other firms from entering the market to sell a product. In the fall in States, only the USPS can deliver front class mail, so this would be a legal barrier to entry. In...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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