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A monopoly is where a business is the only business in its product/service/brand market. This would give you an advantage because it not only makes the market less competitive but gives you NO competitors. The general pros are: You have more control over your price. Your research and development (R&D) costs can be lower since there will be no competitors driving you to constantly improve; this also includes you are not pressured by them to constantly meet their changes, so you have more control over the evolution of your product. You get 100% of the market, if people want the product or service they have to buy yours.
This is where the road splits depending on if your product or service is a necessity good or a luxury good. A necessity good is basically a good that people have to have no matter what or cannot live without. A luxury good is an item that is 'extra,' you can live without it, and when the times are tough you do, but when the times are good you buy more of it. If the product or service you are providing is necessity good, then being a monopoly can allow you to basically set any price on your product or service. Your product will be bough generally at an even rate through the good and bad times.
If your your product is a luxury good then you will have more pressure from the market to make product/service improvements, price improvements (up or down depending on the economy, branding, etc). Your sales will be influenced by both the economy and the wealth of your customers (as people's income increases they will buy more and more of the product). If times are good and you have a luxury product or service that is monopolized and wanted you are good but if times are bad you are in trouble.
In the end, even if you have a monopoly your product/service has to be wanted. I could have a business monopoly on picking other people's noses but since that is a unneeded and unwanted (hopefully someone else picking your nose is undesired), you will not make money or have a successful business.
Wiki User
∙ 14y ago
Wiki User
∙ 11y agoHaving a monopoly (control of a large share of a market or commodity) allows a business to charge higher prices, or reduce what they pay for resources, or control the businesses they deal with. The main function of a monopoly is to maintain itself, usually by limiting or eliminating its competition.
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What is the term for monopoly?
When one company out-sells another and the one that was out sold goes bankrupt, it is called a monoply. Actually, a monopoly is when only one business has control over an industry. The term for running another business out of business is called predatory capitalism. For instance, lets say you and I both sell hot dogs, and can both make a comfortable income at $1 each. Lets supposed I am wealthier than you already and really don't need the business. So I start selling hot dogs for twenty cents each. Yes, it would hurt me, but if you don't have the same resources, it would run you out of business. Then I could charge $2 each or whatever. I'd have all your customers and the freedom to charge what I want. So predatory capitalism can create a monopoly, but that is not the only way one is created.
Is monopoly better than monopoly express or monopoly express better than monopoly?
If you want something entertaing for a short period of time Monopoly Express is better.If you want somethig that is longer , Monoploy. But you could play the original Monopoly on the Monopoly Express gameboard.
What do you need to create a business plan?
I am 22 year old man from Alappuzha ,Kerala.I was interested in business. I wanted to start a new business. so, i want to create new ideas or business plan
Can monopolies become oligopolies?
If you have a monopoly, why would you want an oligopoly? You make more profit alone.
Why telkom would want to stay a monopoly?
Becouse telkom supplies the whole of South Africa
Why did hoover want the government to create too many new jobs because it would what?
goverment/business&&taxes.
What is the term for monopoly?
When one company out-sells another and the one that was out sold goes bankrupt, it is called a monoply. Actually, a monopoly is when only one business has control over an industry. The term for running another business out of business is called predatory capitalism. For instance, lets say you and I both sell hot dogs, and can both make a comfortable income at $1 each. Lets supposed I am wealthier than you already and really don't need the business. So I start selling hot dogs for twenty cents each. Yes, it would hurt me, but if you don't have the same resources, it would run you out of business. Then I could charge $2 each or whatever. I'd have all your customers and the freedom to charge what I want. So predatory capitalism can create a monopoly, but that is not the only way one is created.
Use monopoly in a sentence?
Jane has a monopoly in that area. Mary has a monopoly of banks.
Is monopoly better than monopoly express or monopoly express better than monopoly?
If you want something entertaing for a short period of time Monopoly Express is better.If you want somethig that is longer , Monoploy. But you could play the original Monopoly on the Monopoly Express gameboard.
How can one create a business website for free?
Depending on the type of business, you could create the website yourself. Books and websites that can teach you to code HTML are numerous, and you can create exactly what you want. While creating the site itself would be essentially free, you would still likely have to pay to register a domain name and for hosting.
What do you need to create a business plan?
I am 22 year old man from Alappuzha ,Kerala.I was interested in business. I wanted to start a new business. so, i want to create new ideas or business plan
How can you create employment opportunities?
For starters, create your own business and also, create enough jobs for people who want to apply for the position.
Can monopolies become oligopolies?
If you have a monopoly, why would you want an oligopoly? You make more profit alone.
Why telkom would want to stay a monopoly?
Becouse telkom supplies the whole of South Africa
How will i pay if you want to buy light rail stations in monopoly?
With monopoly money...
Can a company charge whatever they want if there are no competitors?
Technically, yes, but there would never be such a situation in U.S., as that would be monopoly, which are illegal.
How are business born?
Business are born because people want to create something that will have an effect in people live.
