What are the features of capitalism economy?

Answer 1

In a capitalistic society, a monopoly is when one company oversees all aspects of the manufacturer and distribution. For instance, with the Standard Oil monopoly, the features were control of the pipelines, refineries, transportation, manufacturing sources, and distribution for oil, owning over 90 percent of the market.

Answer 2

# There is a market where there are goods/services produced for exchange # Productive wealth is held mainly in private hands # Economic life is organised according to market principles of demand and supply # Material self-interest and profit maximisation provide the motivation for hard work

Answer 3

Some of the key features of capitalism include free trade and price changing according to supply and demand. People produce what they are good at making and what they have the resources to produce. The great focus remains in making profits.

Answer 4

the exact opposite of the socialist economy:

- profit driven

- producers decide on the 3 main economic questions: what is to be produced etc.

- very little government intervention

- rich gets richer and the poor gets poorer

Answer 5

· The Word Mono Means Single Poly means seller

· The first and foremost important feature is there will not be any close substitute

· There is no free entry and exit because of some restrictions.

· There is a complete negation of competition.

· Monopolist is a price maker.

· Since there is a single firm, the firm and industry are one and same i.e. firm coincides the industry.

· Monopoly firm faces downward sloping demand curve. It means he can sell more at lower price and vice versa. Therefore, elasticity of demand factor is very important for him.

Kinds / Types / Classification of Monopoly ↓

1. Perfect Monopoly

It is also called as absolute monopoly. In this case, there is only a single seller of product having no close substitute; not even remote one. There is absolutely zero level of competition. Such monopoly is practically very rare.

2. Imperfect Monopoly

It is also called as relative monopoly or simple or limited monopoly. It refers to a single seller market having no close substitute. It means in this market, a product may have a remote substitute. So, there is fear of competition to some extent e.g. Mobile (Cellphone) telcom industry (e.g. vodaphone) is having competition from fixed landline phone service industry (e.g. BSNL).

3. Private Monopoly

When production is owned, controlled and managed by the individual, or private body or private organization, it is called private monopoly. e.g. Tata, Reliance, Bajaj, etc. groups in India. Such type of monopoly is profit oriented.

4. Public Monopoly

When production is owned, controlled and managed by government, it is called public monopoly. It is welfare and service oriented. So, it is also called as 'Welfare Monopoly' e.g. Railways, Defence, etc.

5. Simple Monopoly

Simple monopoly firm charges a uniform price or single price to all the customers. He operates in a single market.

6. Discriminating Monopoly

Such a monopoly firm charges different price to different customers for the same product. It prevails in more than one market.

7. Legal Monopoly

When monopoly exists on account of trade marks, patents, copy rights, statutory regulation of government etc., it is called legal monopoly. Music industry is an example of legal monopoly.

8. Natural Monopoly

It emerges as a result of natural advantages like good location, abundant mineral resources, etc. e.g. Gulf countries are having monopoly in crude oil exploration activities because of plenty of natural oil resources.

9. Technological Monopoly

It emerges as a result of economies of large scale production, use of capital goods, new production methods, etc. E.g. engineering goods industry, automobile industry, software industry, etc.

10. Joint Monopoly

A number of business firms acquire monopoly position through amalgamation, cartels, syndicates, etc, it becomes joint monopoly. e.g. Actually, Pizza making firm and burger making firm are competitors of each other in fast food industry. But when they combine their business, that leads to reduction in competition. So they can enjoy monopoly power in market.

Answer 6

1. No competition (one-firm market).

2. High barriers to entry (type of barriers determines whether it is a natural or legal monopoly).

3. Typically, mark-up pricing (optimal price occurs at marginal revenue = marginal cost).

Answer 7

Some of the major characteristics of monopoly capitalism are; the world-wide proliferation of multinational corporations that come to hold monopolies of duopolies with other corporations over certain markets; intensifying economic crisis often fitting the Marxist theory of crisis of overproduction; and the financialisation of capitalism.

Answer 8

A monopoly normally has one major organization responsible for giving goods or services. There is no competition for clients and prices are determined by the organization with the monopoly.

Answer 9

It is the economic system in which every individual as a consumer, producer and resource owner is engaged in the economic activity with a degree of freedom.

Answer 10

A tiny minority own the means of production, and live very nicely by exploiting those who do the work. Most people have to work for a wage in order to live. Production takes place to make a profit.