Monopoly & Monopolistic

Topics: Economics, Monopoly, Monopolistic competition Pages: 3 (1051 words) Published: March 13, 2013
Monopoly & Monopolistic

ECO 204

January 14, 2013

There are plenty of companies in America today that are controlled by a monopolistic market.  Although there may be a few that are controlled as a monopoly market, while there are a few that are out there such as the Gas and Electric Company, SDG&E and the USPS.  It can be difficult when you are going from a monopolistic firm to a monopoly only because the market is completely different from one another.  When it comes to Wonks, there are plenty of beneficiaries when we analyze the differences of going from one to another.              It is uncommon that a firm will go to a monopoly after being a monopolistic company.  But as we dig deeper there can be some advantages as with anything there are disadvantages to the government, companies and society.  As stated in our text the definition of the monopolistic is as follows, “A common form of industry (market) structure in the United States, characterized by a large number of firms, no barriers to entry, and product differentiation” (Case, pg. 304).  When we look at a monopolistic company indicates that there are multiple types of the same type or similar companies that create the same product(s).  This tends to be a common theme here in America.  Wonks changed to a monopoly firm which resulted in ““An industry with a single firm that produces a product for which there are no close substitutes and in which significant barriers to entry prevent other firms from entering the industry to compete for profits” (Case, pg. 262).  In a monopoly firm there is one main firm that manufactures the product and nobody else can replicate the product.

Looking on the brighter side, there are plenty of advantages to having a monopoly company that could be beneficial for the government, other companies as well as customers. The government usually looks at a firm that is considered a monopoly and they are the ones who allow the sense of control over the company....
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