This essay will look at efficiency between both a monopoly and a perfect competition‚ and whether a monopoly is necessarily less efficient than perfect competition. Using diagrams and equations reflecting the optimal choice of output‚ marginal revenue and marginal cost for monopolies‚ I will explain how efficiency is affected by low levels of production. At the same time monopolies can increase efficiency due to their ability in price discrimination‚ they price people differently and therefore
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Name: Lê Đức Anh Class: 12B Subject: Economic Question 3: Discuss whether monopolies always lead to an increase to inefficiency? Monopolies‚ in economist mind they are bad‚ however‚ not all things that monopolies do are bad‚ and they also bring benefits along side the negative effect. First‚ monopolies have an advantage of research and development. Monopolies can achieve supernormal profit‚ as they can set high price to a certain product‚ this can be used to fund high cost capital investment
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Activity 2 BSAD 1050 1. In a free market‚ greed prevents monopoly. Explain. A free market prevents a monopoly because it does not allow someone or‚ some company‚ to corner the market. There is always someone else that is willing to make or sell a product for the same or lesser price. For instance‚ in a free market there is not just one phone or cable company providing television or phone service. Other companies are allowed by law to provide those same services. Since the goal of the
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Is Monopolies Harmful and How Can Regulation Ameliorate These Harmful Effects? Why is monopoly harmful? How can regulation ameliorate these harmful effects? What problems confront the regulators? In order to deduce that a monopoly is harmful’‚ there must be another market system which is preferable to monopoly so as to offer greater benefits to the public. A monopoly can therefore be compared to perfect competition. If the benefits of perfect competition outweigh the benefits of monopoly then
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Company description: The United States Postal Service was an independent government agency of the United States‚ but has since been converter into a private entity. USPS was officially formed 45 years ago‚ on July 1st 1971‚ but its roots can be traced back to 17th. In the early years‚ there were many attempts to start a postal office‚ but most of them were on a small scale. There was a growing demand for families to send letters back home to England. The first postal organization started around 1691
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of marine life (industries)‚ different swells (market structure) and even ’hot’ and ’cold’ spots (public companies). One of the key determinates to a successful national economy is the structure of its markets. The main market structures are: 1. Monopoly 2. Oligopoly 3. Perfect Competition 4. Monopolistic Competition Each of these market structures have unique characteristics‚ and can be classified according to three factors. The degree of competition‚ the first factor‚ is important as it classifies
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Business Model Canvas of United States Postal Service Customer Segments USPS caters the mail and package delivery services to a mass of different customers. It has different variety of services depending on what the customer wants. So customer segments are divided according to the type of services the USPS provides. 1. Individual citizens: The USPS has the first class mail and standard mail that the citizens can use to use to send personal cards‚ letters‚ bill payments‚ etc. Basically anything
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Express CPP”‚ “Priority Express SH”‚ “Priority Express SH Commercial”‚ “Priority Express HFP”‚ “Priority Express HFP Commercial”‚ “Priority Express HFP CPP” 4.2.2 added to allow for specification of the expected time when providing the package to USPS 4.2.2.1 Schema location: Between and 4.2.2.2 Optional tag‚ optional value 4.2.2.3 Format: HH:MM 4.3 RateV4 Response 4.3.1 Modified CLASSID and MailService response values 4.3.1.1 See Appendix A 4.3.2 returns availability of extra service
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Monopolies can be national (royal mail)‚ regional (water companies) or local (petrol station). Unlike a perfect competition situation were firms are ’price takers ’ and only respond to consumer demand‚ a monopoly finds itself in an imperfect competition market. In this type of market the firm is more of a ’price maker ’ and can therefore influence the market price. When comparing monopoly and perfect competition under the same conditions‚ we can find that the monopolist when in equilibrium produces
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The United States Postal Service (USPS) has been government owned since its establishment; however privatizing the USPS will consolidate the nation’s debt without the help of taxpayer money. The USPS is an independent government agency responsible for providing postal service for the United States (AllGov‚ 2013). The USPS is a preferred transporter for postal services‚ which explains why the USPS makes huge revenues; nevertheless this does not conclude the USPS is making a profit. With the nation
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