because average costs drop as production rises
because average costs drop as production rises
perfectly competitive industry become a monopoly, what changes
Globalization is the process by which economies and cultures are many nations become integrated and interrelated.
Economies are most efficient when there is competition.
Advantages Of Monopoly* Research and Development. Supernormal Profit can be used to fund high cost capital investment spending. Successful research can be used for improved products and lower costs in the long term. E.g. Telecommunications and Pharmaceuticals. * Economies of scale. Increased output will lead to a decrease in average costs of production. These can be passed on to consumers in the form of lower prices. * International Competitiveness. A domestic firm may have Monopoly power in the domestic country but face effective competition in global markets. E.g. British Steel * A firm may become a monopoly through being efficient and dynamic. A monopoly is thus a sign of success not inefficiency.Source: Economic Help
Average costs drop as production rises. This is why natural monopolies are possible.
because average costs drop as production rises
perfectly competitive industry become a monopoly, what changes
perfectly competitive industry become a monopoly, what changes
Two main reasons: 1. There are greater profits to be gained by being a monopoly, either in the form of lower costs (economies of scale) or higher revenues (since all the industry demand is supplied by one company). 2. Less uncertainty. You don't have to worry about competition.
Being a monopoly is to run the buissness but attemting is to be trying to get one but not have one
If one company were to become a monopoly then consumers would not have a choice as to who to give their money to. Consumer choice and competition are cornerstones of capitalist economies, and to preserve them we must put measures into place that prevent the rise of monopolies.
Globalization is the process by which economies and cultures are many nations become integrated and interrelated.
the most efficient use of resources in producing what people want
Natural resources (mining, agroindustry and oil) qualify as such.
NAFTA
Economies are most efficient when there is competition.