$20 Bonus + 25% OFF
$20 Bonus + 25% OFF
Securing Higher Grades Costing Your Pocket? Book Your Assignment at The Lowest Price Now!
Add File

Error goes here

ECO511 Economics For Business

tag 0 Download3 Pages / 699 Words tag Add in library Click this icon and make it bookmark in your library to refer it later. GOT IT

Question:

Monopoly can be defined as a market condition where one single seller supplies the goods and services in the market. In monopoly, there is only single seller producing unique product in the market and faces no competition. However, It is not always necessary that monopoly sells unique product but there must not be close substitute.one single firm is the whole industry in the monopoly. Hence, they are the price maker not taker.  

Government creates barrier for new entrants in the monopoly markets and allows the firm to create monopoly. There may be various reason behind this.  For e.g. In order to balance the economy of the country or motive to serve its citizens like generating employment opportunities, control the inflation or may tries to collect revenues (Amir, 2013).

Exclusive ownership:

When the firm have the ownership that is exclusive or the resources that is scare, then the monopoly is created as other firms lacks the resources.

Copyright and Patent:

Copyright or patent of the intellectual property also leads to monopoly. Also the public franchise acts as a barrier in the monopoly market.

Network Externalities:

A firm having  strong network externalities like, strong and long term connection with raw materials supplier also enhances in formation of monopoly.

Economies of Scale:

when the firm has economies of scale, they can get bigger and bigger to have efficiency in the work. Bulk buying, product specialization etc. also helps in furnishing (Pettinger, 2008).

Different types of firms uses their own way of determining the price and output being based on the nature of their firm. Price and output determination under perfect competiition and monopoly are different

Interaction of demand and supply curve determines the price and quantity to be produced under the perfect competition. As there are many competitors in the market, firms are price taker not maker and cannot set their price and quantity production. There arises many substitute products. Those firms that provide quality products at comparatively cheaper price exists and the one that cannot fulfill these terms cannot survive.

Price is determined by the seller itself. It has good control in the supply of the product and can influence the demand to some extent but cannot fully control the demand in the market. There must be careful study of the elasticity of demand of their product before setting the prices.

Download Sample Now

Earn back the money you have spent on the downloaded sample by uploading a unique assignment/study material/research material you have. After we assess the authenticity of the uploaded content, you will get 100% money back in your wallet within 7 days.

Upload
Unique Document

Document
Under Evaluation

Get Money
into Your Wallet

Total 3 pages, 1 USD Per Page

Cite This Work

To export a reference to this article please select a referencing stye below:

My Assignment Help. (2021). Economics For Business. Retrieved from https://myassignmenthelp.com/free-samples/eco511-economics-for-business/natural-monopoly.html.

My Assignment Help (2021) Economics For Business [Online]. Available from: https://myassignmenthelp.com/free-samples/eco511-economics-for-business/natural-monopoly.html
[Accessed 16 September 2021].

My Assignment Help. 'Economics For Business' (My Assignment Help, 2021) <https://myassignmenthelp.com/free-samples/eco511-economics-for-business/natural-monopoly.html> accessed 16 September 2021.

My Assignment Help. Economics For Business [Internet]. My Assignment Help. 2021 [cited 16 September 2021]. Available from: https://myassignmenthelp.com/free-samples/eco511-economics-for-business/natural-monopoly.html.


At MyAssignmenthelp.com, we are committed to deliver quality assignment assistance in the fastest way possible. To make our service delivery fast, we have hired subject matter experts to work on different subject specific assignments. We have hired experts who owe in-depth knowledge in their respective subjects. As per their expertise, they provide geography assignment help, Physics assignment help, Strategic assignment help, history assignment help, art architecture assignment help and assistance with other subjects as well.

Latest Economics Samples

313695 Advanced Discipline Project 692

Download : 0 | Pages : 44

Answer: Introduction E learning is highly influencing the entire world because of the benefits, which the system is bringing to the educational system. It has enhanced the educational system. It took it to a different level, which has its governance under the hands of information and communication technology. It has helped in changing the style of learning by adding certain dimensions to the educational styles that had never been imagined bef...

Read More arrow

1393AFE Economics For Decision Making 1

Download : 0 | Pages : 7

Answers: 1. a. A PPC  (Rittenburg & Tregarthen) is bowed out due to increasing opportunity costs of producing a good. Consider X and Y. This means that to produce more of X we must reduce Y as our resources are fixed. We have to move from point A to B. To produce 1 more X, we have to pull out resources ( like labor ) from Y and put them into factories for X. We reduce Y as shown by red line as we move from A to B to get 1 more...

Read More arrow Tags: Australia Berkeley Management Production Management University of Queensland MBA 

BUS700 Economics

Download : 0 | Pages : 11

Answers: Introduction Australia is considered one of the wealthiest countries in the Asia Pacific region. For nearly twenty five years the country has experienced economic expansion. It has not experienced a recession within those periods despite the presence of the Great Recession in 2009. The country has however, experienced fiscal deficits which may have influenced the level of GDP, inflation and unemployment of the country. Globally, the ...

Read More arrow

HI5003 Economics For Business

Download : 0 | Pages : 5

Answer: Introduction Analysis of stable equilibrium is the focus of this paper. Stability is a state where deviation of that state brings back the state without intervention of any external force. The stability of an economy is implied by a stable state of income, price level, and employment condition and in its external sector. The autonomous operation of price mechanism maintains equilibrium in a single market. Both microeconomic and macroe...

Read More arrow

ECON 101 Economic Principles

Download : 0 | Pages : 3

Answers: 1.A business case essentially refers to the reasons behind the investing or initiating a certain project. The primary logic behind the creation of a business case is that the allocation of resources that are required in the particular project should be specified in a detailed basis. An ideal business case covers all the qualitative and quantitative features of a project that has been proposed. In simpler terms a business case is funda...

Read More arrow Tags: United States Tampa Management UNCC100 Our World: Community and Vulnerability University of Florida Humanities 
Next

5% Cashback

On APP - grab it while it lasts!

Download app now

*Offer eligible for first 3 orders ordered through app!

ribbon
callback request mobile
Have any Query?