0.0 Introduction Economic monopoly caused by market access restrictions, mainly for the exclusive access to market opportunities, once the economic monopoly, the opportunity to enter this the market by new investment is difficulty. The principal of economic monopolies are not share the opportunity to enter the market with others, but also do not share new market opportunities with other undertakings. 1.0 Monopoly in the context of Economics Monopoly is a market structure where only one firm only exists in it to producing a specific goods and services to consumer. They are referred to as the monopolist. They control the whole market share, as they do not have any competition and has ability to control the production and pricing.
Capitalism polarizes a society economically: the very rich and the very poor. Capitalism creates large scale economic inequality which, in turn, can engender grievances among members of a society fueled by the haves and not haves. Capitalists argue that, open/free market provides the opportunity for anyone to freely compete and pursue their desired choices; however, the religious moral argument castigates the capitalist economic order mainly because of the moral implications for members of a society as a whole. Greed – natural or nurtured – obliges individuals to accumulate excessive wealth. These patterns can be clearly observed in the capitalist economic environment where persons with higher economic capital dominate persons with lower capital.
He claims that the laborers get poorer the more wealth they produce. The more commodities created, the cheaper they become. Marx states that while the value of objects in this world increase, the value of human beings decrease. I have found there to be a lot of truth in this even in the world today. Usually the things that we can buy for super cheap come at the expense of exploiting some child laborer working an illegal amount of hours in some factory while being paid basically nothing.
In a monopoly market, there is only one seller. The seller controls the price and supply of a product or service. A monopolistic can also control the market because there is only one service in the market and will get a lot of buyers. In a monopoly market, the products are unique and do not have similar substitutes. All the units of a product are similar and there are no alternative to that commodity in the firm.
Besides that, there are always problems with market economy system. There are some disadvantages such as the exploitation of workers and uncomfortable working condition, investment priorities and wealth becomes distorted, goods cost will be lower due to the mass produced, prices may give false or inadequate signals to producers and consumers, high levels of unemployment due to the overproduction of goods, and produce a skewed distribution of income through large gap between the rich and the poor. Free competition is the spirit of market economy system, naturally led the group with income and wealth in order to compete with any particular group. The market economy instead of making competitive but it leads to monopoly. In this paper, the writer would like to address the reasons of market economy is a poor choice for developing country to stay
Capitalism is an economic system which is defined by 3 major characteristics; private ownership and control of the means of production, a market of goods and services, and wage labor. Private ownership of the means of production is when an individual or corporation has control over the factors of production, a market of goods and services is the competition between businesses to sell those goods or services to consumers, and wage labor is when an individual sells his labor to an employer under a contract. This essay will elaborate on why capitalism isn’t the only viable option and how alternatives such as economic democracy or socialism are possible. Karl Marx criticized capitalism and one of his main arguments was how it was alienating. Marx’s definition of alienation was when the workers felt isolated and didn’t have a connection to their labor or the products they were making which led to the feeling of being controlled and exploited.
The “American Dream” is built upon the idea of expanding one’s own ability due to the opportunities provided through having a democratic government and capitalist economy. Essentially though, there is no freedom among people that determines their success because ideas and materials which may attribute to prosperity are only in result of supply and demand. Representatives are put into power because they supply people with the notions which they demand, and businesses succeed due to supplying a service people which they demand. An individual can only succeed by having an extraordinary idea which grants people with something they were not aware of their want for. Although occupation is seemingly a person’s own choice, “we, the proletariat, don’t have the means to make our own living as we like, to create the society we’d like to live in.
Market failure is when the free market fails to allocate resources in the most efficient way. What that means is resources are being used to produce goods that could instead be used to produce something that is more beneficial to society. (Williamson, O. E. 1971) So market failure means the economic market can’t give the goods or services to the customer efficiency, and make a great impact to customers. Merit goods means somethings that provide by the government or the country, it will not get benefit from consume merit goods, but it will also bring some benefits for the society, but people will not recognize it. (Musgrave, R. A.
This means manufacturers can only produce limited number of goods and are unable to demand for higher prices for their commodities and monopolize the market. List of Disadvantages of Communism 1. It hampers personal growth. One of the setbacks of communism is its being too controlling on the lives of the people. Since it is a classless society, everyone is equal in social status and no one is above the other.
Alienation is the process whereby people become foreign to the world they are living in. Marx has a specific understanding of the very sharp experience of alienation which is found in modern Bourgeois society. Marx’s declared labour is not carried out with any consideration for the individual’s talents and skills but rather takes place entirely according to the laws of capitalist commodity production. Marx emphasized as modern society grows the worker becomes poorer with the wealth he produces and the more his production extends and increases in power, the worker is becoming a cheaper commodity than what he produces. In Marx’s writing in1844, he shows how alienation arises from private labour.