Monopoly is the final type of market structure in which a single seller dominates trade in a good or service for which buyers can find no close substitutes. A monopoly is distringuished from a monospony, in which there is only one buyer of a product or service. It can also have a monopsony control of a sector of a market. All types of Monopolies can be established by a government, form by integration. The way Monopoly derive their market power is from a berrier to entry. There are three major tpes of barriers to entry which are the economic, legal, and deliberate. Im going to tell you how each one works and what it is helpful more. First, the economic barriers include economies of scale, capital requirements, cost advantages, and the technological superiority. Secondly, are the Legal barriers. It can provide opportunity to monopolise the marker of a good. Lastly, is the Deliberate actions whivh a company has been wanting to monopolise a market may engage in various types of deliberate action to exclude competitos or eliminate competition.
Market structures are very important in Monopoly. It provides he basis topics such as industrial organization and economics of regulation. Traditional economic analysis, perect competition, monopolictic competition, oligololy, and monopoly are the four types of market structures. Monopoly versus competitive markets is a challenge. They are similar due to the fact that they both minimize costs and maximize profit. Presiding over eachothers territory can cost millions. Many governments regulate monopolies because a monopoly market lacks the benefts of competition. The U.S. Governement appiles laws against monopoly behavior by Microsoft not allowing big companies in some industries. The Government permits certain monoplies in exchange for regulating their activites.
A pure monopoly has the same exact economic retionailty of perfectly competitive companies. Total revenue and total cost maximizes a monopol over a chose of the...
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