comes into a merger with china then the production and economic profits is unimaginable. China is one of the world’s leading productions in products worldwide now combing that with the cell phone chip makers‚ no other company would dare go against them or even try to keep with the company. The Marginal Revenue or Marginal Cost will skyrocket in competition. If the merger occurs it would call a Deadweight Loss to Society meaning that the costs to society created by market inefficiency and loss occur when
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Topic: Monopoly and Monopolistic competition Macedonian telecommunication Monopoly and monopolistic competitions‚ basic concepts monopoly means a market situation in which there is only a single seller and large no. of buyers. whereas monopolistic competition is a market situation in which there is large no. of sellers and large no. of buyers. in monopolistic competition‚ close substitutes are there in the sense that products are different in terms of size‚ colour‚packaging‚brand‚price
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MONOPOLY A monopoly is an enterprise that is the only seller of a good or service. In the absence of government intervention‚ a monopoly is free to set any price it chooses and will usually set the price that yields the largest possible profit. Just being a monopoly need not make an enterprise more profitable than other enterprises that face competiton the market may be so small that it barely supports one enterprise. But if the monopoly is in fact more profitable than competitive enterprises
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[pic] A profit maximiser increases output until MC=MR at Q1. The intersection of MC with MR gives the profit maximising level of output. The intersection of MC with MR gives the profit maximising level of output. To find the market price one must project up from Q1 to the demand curve and across the vertical price axis‚ P1. Consumers are willing to pay P1 for Q1. Unit costs are only P2 so the firm is making an abnormal profit of (P1-P2)*Q1 The four key characteristics of monopoly are: (1)
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Definition of ’Monopoly’ A situation in which a single company or group owns all or nearly all of the market for a given type of product or service. By definition‚ monopoly is characterized by an absence of competition‚ which often results in high prices and inferior products. According to a strict academic definition‚ a monopoly is a market containing a single firm. In such instances where a single firm holds monopoly power‚ the company will typically be forced to divest its assets. Antimonopoly
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The Monopoly Ahmed El-Zeini‚ chairman of the division of building materials in the Chamber of Commerce in Egypt‚ says: "Some analysts believe that the cement industry has suffered too much from the monopoly of certain local manufacturers‚ not to mention the manipulation of prices. The Egyptian Authority for the protection of competition and prevention of monopolistic practices has begun to study the cost of cement production in the local plants‚ to make sure no monopolistic practices are being carried
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Monopoly Monopoly means a market where there is only one seller of a particular good or service.In economics‚ a monopoly (from the Latin word monopolium – Greek language monos‚ one + polein‚ to sell) is defined as a persistent market situation where there is only one provider of a product or service. Monopolies are characterized by a lack of economic competition for the good or service that they provide and a lack of viable substitute goods. Monopoly should be distinguished from monopsony‚ in which
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Why Are Cost‚ Revenue & Profit Important? Cost‚ revenue and profit are the three most important factors in determining the success of your business. A business can have high revenue‚ but if the costs are higher‚ it will show no profit and is destined to go out of business when available capital runs out. Managing costs and revenue to maximize profit is key for any entrepreneur. Definition of Terms Revenue is the same as total income for a business and measures all money taken in through
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CHAPTER 4 : COST-VOLUME-PROFIT ANALYSIS : A MANAGERIAL PLANNING TOOL SUMMARY Cost-Volume-Profit analysis estimates how changes in costs (both variable and fixed)‚ sales volume‚ and price affect a company’s profit. CVP is a powerful tool for planning and decision making. Operating Income = Total revenue – Total Expense Contribution margin is the difference between sales and variable expense. It is the amount of sales revenue left over after all the variable expenses are covered that can be used
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card in life; unless of course they are playing the classic family board game‚ Monopoly. Those who monopolize a specific market most definitely do not have a “get out of jail free” card‚ as they are committing felonies. Both of these different monopolies are a great pleasure to win‚ but a pain to lose. In this paper I will compare and contrast these two different forms of monopolization. In the classic game of Monopoly‚ the objective one is faced with is to become the richest and most powerful mogul
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