Essays on Monopoly

Introduction

Comcast and Time warner Cable are two competitors in the provision of cables in the market. The two companies are selling the same product in the market on very competitive market forces. The two companies, therefore, merges in order reduce the competition and working together to achieve the same goals and objective since they provide the same products. When these two companies merge, the levels of competition in the market will reduce effectively enabling them to have almost full control of the market through monopoly. The mergers will be able to determine prices and provide products to the customers

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Why It Is Bad for Air Canada Monopoly in Air Business in Canada

Introduction
Since the Canadian Airline was bankrupted in 2001, thus Air Canada became the only giant airline in Canada and monopoly in the air business for over a decade. According to the Air Canada’s Annual Information Form 2012 that Air Canada occupied approximately 55% market share of domestic air business and 37% for international flights (excludes flights to the US) departure from Canada (Air Canada’s Annual Information Form, 2012). However, throughSkytrax servers that the Air Canada show low satisfaction for its services due to incredible high price, poor staff services and maintenance and high frequently delay even

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Following the American Psychological Association’s Guidelines

Introduction
Pricing strategy is an important decision for the companies. Price means the agreement or the balance point between suppliers and demanders. In another word, price exhibits who is (are) stronger in the market; it is the most important indicator in the market. The price occurs depending on the strength of the side in the market. The companies would like to have more power, and having more power in the market happens through controlling the price. Thus, if a company or a group of companies can control the market price, then they get the monopoly or oligopoly power. Subsequently,

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Introduction

This paper is going to describe one of the most popular games in the world – “Monopoly”. The game was founded in United Stated, created by Parker Brothers. It gained its popularity in 20th century, and became one of the most played games in the world. The major idea behind this game is to build a monopoly (to become the only owner of the businesses) and become the most successful and powerful businessman in the game. Moreover, the main task of the player is to lead other players to the bankruptcy. However, the most fascinating merit of this game is

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The fundamental rule of economics is that it is a study of interaction of various market forces for utilization of the limited resources towards the satisfaction of unlimited demands of the society. The interaction and power of the forces of demand and supply determines the nature of the market. Microeconomics is the study which deals with the interaction of the individual demand and supply forces. The nature of such interaction and the relative influence of demand and supply forces would determine the kind of competition that exists in the market i.e., perfect competition or imperfect competition. The paper has

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Discussion Question

A monopoly exists when a particular person or enterprise is the only supplier of a particular commodity. Monopolies are thus characterized by a lack of economic competition to produce the good or service and a lack of viable substitute goods. There could be two ways monopoly can occur - Natural monopoly and Pure monopoly (Kaplow, 2010). Natural monopolies occur since it is cheaper and more efficient to have the firm alone usually due to the very high infrastructural and start-up costs. This mostly happens with utility companies eg. electricity, water, gas, rail – as an effect of the need for

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- Explicit costs are those costs that are incurred and recorded in the financial statements. They are taken to be the cost of doing business, and incurred in the process of manufacturing or providing a service. For example, Cost of Labor, Material, Rent, Depreciation etc. Implicit costs are those costs that are incurred, but are not recorded. For example opportunity cost of capital by investing the funds in other businesses. Accounting profit is usually higher than the economic profits because it does not take into account the implicit costs of a business, because they are not the actual costs,

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A market is a system through which the buyers and sellers of a product interact. Markets can be identified by the product it deals in. For example market for computer software, market for crude oil etc. Markets can also be distinguished by the geographical expanse like the local market or the international market for a product. In economic analysis it is more important and more usual to classify markets in terms of the degree of competition present in the market. In this mode of classification we consider two forms of market, the buyer’s market and the seller’s

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Introduction

Transport for London (TFL) is a transportation agency created by the government in 2000 to manage the public transportation system. TFL is responsible for managing the London underground system, Docklands Light Railways (DLR), Tramlink, peripheral heavy rail, ticketing services, taxicab services, taxes, and road safety. As per the government ruling in the 1990s, in order to increase competition, private players were allowed an entry into the transportation market. 100% of the London underground, Tramlink and DLR are owned and operated by TFL, but London road transport consisting of bus and taxicab services is mostly contracted out to many national

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The welfare and income distribution in a market economy is largely influenced by the market structures prevailing in the economy. The degree of competition existing in the market can determine the distribution of wealth between the consumers, producers, workers, and others related to the system. It is a general notion among economists and policy makers that monopolization of the market works contrary to the principle of general economic welfare. The contention is based a number of arguments that favor a competitive market structure over a monopolistic one. The purpose of this paper is to analyze the arguments both in

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A monopoly is a market situation where there is only one seller but a number of buyers. The seller is the price maker. The monopolist enjoys absolute market power by virtue of which she can earn supernormal profit. The monopoly power depends, to a large extent, on the possible threats to competition. If the monopolist finds potential threat in terms of entry of competitive firms, the monopolist tries to take effective strategies to keep competitors at bay. The market power of the monopolist depends on how effective the entry barriers are. It is because of the entry barriers that

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Death squads are special armed forces that are involved in the killings of people without legal notice. These squads are also responsible for the forced disappearance of individuals. These death squads often operate with the objective of political repression, genocide, or revolutionary terror. The individuals who are involved in killing people or forcefully kidnapping them often hide their true identities. It is essential for the killers to camouflage or hide their true identity in order to avoid accountability. It is not uncommon or unheard of for these informal groups to be associated with military dictators or police forces. However,

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Leaving the industry’s top four publishers’ shares unchanged and merging the remaining firms to form a single company would not change the four-firm concentration ratios immediately. It will remain at 2,554 as it is before the merger. This is because they will each remain with the same percentage of market share until the new merger takes shape and starts reaping the fruits of the merger. In the long run, therefore, the four-firm concentration ratio may change. The new merger will have a 12% market share which is greater than that of the joint-fourth firm in the current

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Market analysis is mandatory for every organization that decides to introduce its product into the economy. A thorough analysis helps to examine the various aspects of the economy, such as domestic and international demand and supply, barriers in the business and production costs. The apogee of the investigation describes the structure of the market in which the product resides. The paper explains the features of four market structures, namely, perfect competition, monopolistic competition, monopoly and oligopoly, while providing demonstrative examples of each structure. Furthermore, the paper identifies several other economic features, a few of which are; the change in

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Microeconomics

Answer 7)
Allocative Efficiency:
This is an economic efficiency where the producers try to satisfy the maximum want of the consumers. In other words, when the society achieves optimal distribution of goods and services, taking into account the preferences of the consumer, it is said to be allocative efficient. In the economic literature, it is defined as an economic state where the price of the product equals its marginal cost as at this point the price which the consumers are willing to pay is equivalent to the marginal utility they get from the product. Below is the ranking of

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THE IMPROVEMENT OF CHINA'S ANTI-MONOPOLY LAW ——ESTABLISH PRIVATE ENFORCEMENT SYSTEM

INTRODUCTION
Since the adoption of the Anti-Monopoly Law of China on August 1, 2008, only a subtle positive shift in demonopolization has been seen in the Chinese business sphere, given that a very small number of cases were ruled in favor of a plaintiff, while most of the cases ended up in reconciliation (Xiaoming, n.d.).
The Anti-Monopoly Law ultimate purpose is a development through legal means of a fair competition on the markets that will boost the establishment of a market economy (Ming, “Fanlongduan Fa de Zuoyong”, n.d.). The Law provides legal imperative mechanism to prevent and solve existing

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Oligopoly is a market structure in which only few firms are having control over market supply and since there are high barriers of entry and exit from the oligopoly market, the existing firms enjoy the monopoly kind position.( Parkin, 2011) Following are some of the salient features of Oligopoly Market:
1. Interdependence:
Firms operating under oligopoly are interdependent in the decision making process. The reason for the same is that the number of firms operating and competing in the market are very few and any change in price or output level by one firm will have a direct influence

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Business Overview

Kudler fine foods vision commits to the need of providing quality services to customers, with customers taking the first priority in its activities. Kudler fine foods operate mainly in San Diego with shops in California and many other places in the United States of America (Phoenix, 2010). The business endeavors to be the premier food outlet for the people in the area in search of cheese, meat, and other foods all under one roof. The business has three shops in the state of California and considers their activities as free from direct competition. However, the need for competitiveness in

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Management

In the microeconomic analysis of the business competition, application focuses the interaction of the customers and the sellers. The demand and supply have to provide the nature and description of the business in respect to their relationship. The National Cannabis Industry Association is a body that is focused in controlling and overseeing the marijuana business in the United States. The association has the mandate of oversight and ensuring the growth of the marijuana are controlled and done by the certified and competent individuals as it is used under the prescription. Measures are introduced to enhance the control over the

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Following the American Psychological Association’s Guidelines

DESCRIPTIONS OF THE DIFFERENT MARKET STRUCTURES
Market is a place where the buyers and the suppliers meet. Market is a structure which has a main function of determining an acceptable price for goods and services. The determination of the market price is a result of a bargaining process between the buyers and the sellers (or producers). Bargaining means that the sides of the agreement use their advantages and power to persuade the other side for the price they suggest.
As we know there are some certain types of markets occur in the marketplaces: perfect competition, monopoly, oligopoly, and oligopolistic

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There is no doubt that in most situations, increased competition between the sellers of certain products leads to higher efficiency that benefits consumers in a society by forcing the sellers to use their resources more efficiently or reduce the prices.
However, if total demand of a certain product is not large enough to allow more than a single seller to product that certain product or in other terms, if multiple sellers of a certain product whose demand is low means that their average total costs will be very high then in such situations monopoly takes place.
Monopolistic businesses exist

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A monopolistic market structure is one in which there are many sellers or sell similar products. These products are however not identical. Therefore in this market structure is an advanced level of differentiation of products from one firm to another. In this market, there are many firms which offer products to many buyers. Since the market is composed of many sellers, each of these firms is entitled to a certain percentage of the total market share. It has been noted that this market is composed of many sellers. What is makes the market structure different from the perfect competition

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In a market economy, monopolies tend to have only one seller. However, it is close to impossible to have a pure monopoly where there is only one firm in the global market. As a result, monopolies tend to be defined as a market with few firms competing against each other. These firms have the power to hold the price above the socially optimal point. This is known as the monopoly power. A monopolistic market does not have the luxury of free entry and exit of the market (Perloff, 2004, P.109). This is because most of these monopolistic companies have

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Reflections on Monopoly

Finally, post a short reflection of your experience playing the game to the discussion board. Even in the rigged game, everyone was playing by the same rules in the last rounds; did they seem fair? See the supplemental readings that follow for more on this topic.
Monopoly is certainly a game which can be rigged just as the social situation is rigged to favour the rich at every stage of society. Downtrodden communities such as Native Americans and African Americans have been reduced to pariahs in their own country. Although the former have won some rights back especially since

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The generic drug industry is known to provide consumers with quality, safe and effective drugs at cost cheaper than those of brand-name drugs. Brand name products are usually higher in price than their generic equivalents. For instance, while the cost of 20mg Prozac antidepressant goes for $2.9, its generic sells at only $0.91. Additionally the while the cost of 15mg BuSpar, a different depressant sells at $2.3, its equivalent generic is sold at only $0.98 (Maisto and Mark, 14). Generally, it is very unusual to find the price of the generic drug going beyond 40% of the cost of

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The most important lesson I learnt this week is about the significance of product differentiation in a monopolistic market. As a student of business, I must acknowledge that I have known about the contributions of product promotion in a competitive market structure. Before studying this topic, I never knew that product differentiation is of a great importance in coaxing the target clientele to consider the product as the best alternative in the market. The lesson has enabled me to learn that product differentiation dos not necessarily mean physical differences, but uniqueness in the product. It is this peculiarity which

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An excavator comes in a wide range of sizes and capacities, and it is used on construction sites to excavate or move large objects. This heavy-duty construction machine is made up of three parts (refer to figure 1), the first of which is a driving base which consists of two sets of tracks attached to each side of the machine. The second is an operator’s cabin with a set of controls for movement and operation. Lastly, a powerful boom arm with an attachment (e.g. bucket) designed for digging, or lifting and moving objects.
The excavator 324 Model from

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Patents are a way to grant monopoly to inventor in exchange for disclosure of inventors. Having publicly revealed an innovation, the producer gets the exclusive rights and hence more room for its successful monetization. The alternative for the inventor is to keep the invention as a secret, which is more attractive from the point of view of potential profits, but the inventor is exposed to the risks of information leaks.
Patents provide the incentive to innovate, with monopoly being the reward. Without patents, innovators would be challenged by the companies, which try to replicate the product not having spent

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Abstract

Guinea has various sectors, which contribute significantly to the economic GDP in the country. There are various major contributors to the country’s economy including the mining sector and agriculture. Production of commodities and services in the area has a major effect on the growth and development of the economy, in Guinea. Electricity generation presents an imperative sector in the country’s economic system as it is a major driver of production in the economy. Generally, the production of electricity is generated through a combination of thermal and hydroelectric plants. Equatorial Guinea has an estimated generation of 11,000MW

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Microsoft would like to express its discontent with the recent efforts to curtail its market dominance. In regard to the above-mentioned issue, Microsoft would like to reiterate its position that reducing its monopoly power will act against society’s interest.
The unfounded argument that Microsoft is imposing its products on consumers is erroneous as the principal aim of these products is to give the consumer an unmatched experience. Microsoft evinces commitment to superior products through its re-investment in product development, -the numerous versions of the Windows and Microsoft Office support Microsoft’s commitment to superior products.
If efforts to

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[Author’s name]

Monopolistic and oligopolistic competition: theory and examples

Introduction
One of the most important characteristics of an industry is its competitiveness. It often determines how profitable the businesses within this industry are or potentially can be, whether they have incentives to provide quality products and happy the customers are purchasing the products. In microeconomics, three types of market competition are usually being considered: monopoly, oligopoly and perfect competition. Monopoly implies that there is sole supplier of a good or service in the market who is a price setter and most often exploits its monopolistic power to derive excessive profits. The opposite to it is

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It has been proved by economic theory that perfect competition is the best effective structure to maximize society’s benefits (Consumer Surplus + Producer Surplus). In a perfect competition (price equals marginal cost, MC=P), when there are no entrance barriers and no producer is able to influence the pricing levels, the equilibrium point is on the intersection of the supply and demand curve. Monopolistic firms, however, are able to influence pricing levels, as they have no competitors and maintain high market share. The equilibrium point in monopolistic markets is on the intersection of marginal cost and marginal revenue curves (MR=MC).

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Antitrust investigation is the process of controlling monopolies in the market situation. The practice of monopoly by firms in most cases causes inefficiencies in the market the reason as to why it has to be checked. The monopolists take advantage of being the few suppliers in the market and set their own higher prices above the competitive market price set by the market forces of demand and supply. In the recent time two oil companies have been at the center of investigation.
The Statoil as well as Royal Dutch Shell, BP companies been probed into the setting of oil

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Among the four competitive market structures, monopoly occupies the other end of the competition spectrum, in stark contrast with the structure and behavior of industries under perfectly competitive conditions. Monopoly is typically characterized by high industry concentration where there are many buyers but with only one seller, very high barriers to entry and exit, and bounded rationality in the face of absence of perfect or sufficient knowledge. The strongest argument against monopolies may have been voiced by Adam Smith (Church and Ware, 2000) and reinforced in U.S. Anti-Trust Laws (USDOJ, 2008) when they favored more competition than less because

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In the international market, there has been a large existence of monopolies, which have power in controlling prices existing in the market. A monopoly is a situation where a firm is the sole seller in the market (Sullivan 12). This indicates that there are no other sellers in the market offering the product offered by the monopoly. A monopoly gains advantage over other firms since there is less competition in the provision of commodities. The existence of only one firm that offers products gives the customers less power to bargain over the price of the commodities. In addition, this

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Introduction

The 1920s was not only roaring with dance and music but also gangstersism .During this period America was characterized by high level of criminal activities, especially gangsterism and bootlegging. Bootlegging is the smuggling of unlawful commodities. Gangsters took part in prostitution, bootlegging, and organized criminal groups and gambling .Despite the risks linked with gangsterism, it was a rewarding job.
With an increase in crime during this period, the congress had to pass a law, which prohibited alcohol. This seemed as a possible solution to the problem, but proved to be like a drop of water in an ocean people

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This is one of the oldest merchandising companies in the English speaking nations. Eighteen merchants and noble men, who were encouraged by two French explorers, Sieut des Groselliers and Pierre Esprit Radisson that the area surrounding Hudson’s Bay held economic potentials, incorporated the company. The company was named The Governor and Company of Adventures of England Trading in Huston Bay and has never changed the name since then. In 1670, it received a royal charter that granted it governmental authority and monopoly of trade in the whole region that was drained by the waters flowing at the bay.

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Introduction

An economy actually consists of economic system of a particular country or any other area that is, the capital, labor, and land resources. A certain economy is said to be the result of process which involves its history, technological evolution, and social organization, in addition to the area’s natural resource endowment, geography, and ecology as the key factors. Monetary policy is essentially the economic tool that is used in the economy to control the money supply with an objective of promoting the desired economic growth and stability within that economy. Monopolies are a form of market structure where

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The law of diminishing returns states that when one aspect in the manufacture of a product is increased while holding the other factors constant, there will be a reduction in the magnitude of the output in the short run.
For instance, if a company ‘X’ increases one factor of production, say labor, a point will be arrived at whereby additional workers become less and less productive than a certain number of workers. This is accrued to increasing only factor of production disregarding the others. If for example the company increased all the factors of production, the level of production

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The material is significant as it tries to explain the causes and solution to patriarchy. According to Johnson (pp 123) he refers patriarchy as inequality. He argues that patriarchy such as gender inequality and racism are championed by evil individuals. Johnson (pp 124) continues arguing that people usually blame the “system” yet they do not understand it. If they understood the system, they could use it to solve the problem of patriarchy.

The article is very convincing and credible. In referring to Johnson (pp 127), he relates his argument to the monopoly game. The game is controlled by a

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