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A monopoly is the means by which competive markets interact. An intermediary of competition among driving forces in any market sector. Some advantages of having a monopoly are; the ability to function in a complex market mechanism by ways of competition towards a puremonopoly, profit sharing firms exist in monopoly as they strive toward puremonopoly, oligopolistic competition, competitive edges cause markets to increase their barriers to entry and promote future advances in market sectors thereby promoting growth in economics. Without a monopoly, production will cease to be effective and supply/demand will flatline.
Wiki User
∙ 16y ago
Wiki User
∙ 14y ago* 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.
* 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. For example - Google
Wiki User
∙ 12y agoRetail price of the good is higher because any savings in the raw material (IE, computer software improvements like the difference in the capacity of a CD vs a floppy disc) or infrastructure (building paid off, shipping price decreases) are not made available to the consumer because the monopoly refuses to pass these on to the consumer because the good is not available anywhere else. Examples of this are the Microsoft computer operating system and home TV and internet services.
Wiki User
∙ 12y agothe advantage of monoplies business is that businessman only earns profit.
Wiki User
∙ 12y agoThe major advantage of a monopoly is to the monopolist: all the money spent on that particular good or service flows to the monopolist.
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Who benefit a monopoly?
The owner of the monopoly benefits most.
What is the difference between the term 'monopoly' and 'natural monopoly'?
The difference between the term 'monopoly' and 'natural monopoly' is a monopoly is a market situation one group controls the availability and price of a service or item. A natural monopoly is a service or item that is provided by a single sorce. An example would be transportation like buses, or taxies.
Is a diamond a natural monopoly?
No.
What are the four conditions in place in a perfectly competitive market?
the economy Major of those four are the natural monopoly. geographic monopoly, govrnement monopoly. technological monopoly.
What is an natural monopoly?
A natural monopoly exists when a single firm can supply a good or service to an entire market at a lower price than could two or more firms. Generally it arises when there are economies of scale over the relevant range of output.
Who benefit a monopoly?
The owner of the monopoly benefits most.
What is the difference between the term 'monopoly' and 'natural monopoly'?
The difference between the term 'monopoly' and 'natural monopoly' is a monopoly is a market situation one group controls the availability and price of a service or item. A natural monopoly is a service or item that is provided by a single sorce. An example would be transportation like buses, or taxies.
Is a diamond a natural monopoly?
No.
What are the four conditions in place in a perfectly competitive market?
the economy Major of those four are the natural monopoly. geographic monopoly, govrnement monopoly. technological monopoly.
A monopoly permitted by and regulated by the government for its greater social good such as a telephone company?
natural monopoly
Is the market for duty free shopping a natural monopoly?
The market for duty-free shopping is not a natural monopoly. Duty-free shops sell products to travelers who take them out of the country. Natural monopoly only occurs if there is a high cost of starting a business in a particular industry.
How did railroads create a natural monopoly?
good job
What are the benefits of natural gas?
the benefits of natural gas is that it is helthy
What is an natural monopoly?
A natural monopoly exists when a single firm can supply a good or service to an entire market at a lower price than could two or more firms. Generally it arises when there are economies of scale over the relevant range of output.
When Which one of the following is true about a firm with a natural monopoly?
A natural monopoly is likely to arise when economies of sale exist over the relevant range of demand.
Is public education a natural monopoly?
Yes public education is a natural monopoly because it is a market that runs most efficiently when 1 large firm supplies all of its output.
Can higher education be classified as a natural monopoly in European countries and why?
Higher education cannot be classified as a natural monopoly in European countries. That is because there are private and public providers of the education service.
