Advantages And Disadvantages Of Monopoly
Monopoly Student name: Ibrahim Hassan Students ID: 20154196 Teachers name: Marwan Youseef Introduction 1. Talk about monopoly. 2. Formations of monopolies. 3. Keys and Characteristics of Monopoly 4. Natural monopoly. 5. Advantages of Monopoly. 6. Disadvantages of Monopoly Monopoly It is a market structure in which there is one and only one producer (who produces stuff)/seller( who sells stuff) for a specific product. In different words, the solitary business is the industry. The entry into a market is highly restricted due to highly prices or other obstructions, which can be an economic, social or political. The power of a monopoly lives when only one firms controls 35% or a lot more of a specific market. Formations …show more content…
Monopolists with no any substitutions would be able to obtain the best and the greatest monopoly power. Natural Monopoly A natural monopoly is a separate type of a monopoly that might arise when it is extremely highly fixed costs of distributing, its there when a large scale infrastructure is required to make sure that there is supply. Examples of infrastructure it includes groups of grids and cables for the electricity supply, pipelines for the use of gas and water supply, and also networks for underground and rail. These prices are also sunk prices. In case of the natural monopolies, if they trying to upgrade or raise the competition by encouraging new competitors into the market and creates a potential loss of the efficiency. The efficiency loss to the world would probably stay or live if the new competitor had to duplex all the fixed factors that which is, the infrastructure. It might be more efficiently done to let or allow only one firm to supply the market because letting competitions would be a waste duplicate of resources. Advantages of monopoly 1. Monopoly doesn’t copy stuff and hence avoids waste of resources. (We have to know that duplicates and fake stuff, products are a real problem in a lot of
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