Monopoly (Business)

The term monopoly is derived from the Greek words 'mono' which means single and 'poly' which means seller. So, monopoly is a market structure, in which there is a single seller. There are no close substitutes for the commodity it produces, and there are barriers to entry.

1,912 Questions
Monopoly (Business)

Where can you find the menu for monopoly on Excel?

I am not aware of any Monopoly menu on Excel, but there is a Monopoly game available for Excel 2007. You can read about it and download the file (monopoly.xlsm) from the related links.

343344345
Monopoly (Business)

What is a quasi monopoly?

Quasi-monopoly is a kind of monopoly where there is more than one service provider for a particular good/service but the nature of the competition is such that similar kind of service/pricing is offered to the customers.

Generally speaking, quasi-monopolies occur when the marketplace in question has several characteristics:

  1. There are a very few number (generally 4 or less) of very large suppliers
  2. The requirements of the market are such that there is an extremely high barrier-of-entry to be competitive; that is, large, well capitalized (and possibly vertically-integrated) companies cannot effective be challenged by any newcomer not of the same size. In essence, the market is impenetrable by smaller (and/or more innovative) companies.
  3. The type of product or service being produced leads to very little (if any) product differentiation between the companies in the market
  4. Pricing is thus more a factor of the lack of competition between the few existing companies, than it is supply/demand.

For instance, a good place where a quasi-monopoly can occur is aluminum production. Ownership of supplies of aluminum create a barrier to entry, and the extremely large amounts of capital (and large efficiency gains that being fully vertically integrated provide) required means that such industries tend to have only a couple of huge firms. The product (processed aluminum) is very straightforward. Thus, this is a marketplace where quasi-monopolies almost always exist, with seldom more than 2 or 3 companies in the entire market.

315316317
Monopoly (Business)

Why would a business want to create a monopoly?

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.

277278279
Monopoly (Business)

How did Microsoft become a monopoly?

they are the major operating system in all computers world wide, coming in most languages, formats, companies etc...... they also closed down the market for apple in the beginning, but they came back up. They also used the browser internet explorer to stop the cost of buying one like Netscape and others. they pretty much took control of the computer market altogether.

269270271
Monopoly (Business)

What is example of monopoly market?

Easiest example:

Electricity

Water

Gas

A bit more complicated one:

Microsoft (having large percentage, not all of the market)

227228229
Monopoly (Business)

What skills do you need to play monopoly?

strategy and bargaining and business

183184185
Monopoly (Business)

What is the value of a 1940 monopoly game set?

1940 Monopoly ValueHi, it depends on the condition of the game and if there are any pieces missing ect. If it has never been opened then you have a winner. I would look up 1940's monopoly games on eBay and see how much people are willing to pay. It doesn't really matter what the "value" is if nobody wants to pay the value price right, so check what's on eBay.com and see if any descriptions on there are close to what your game looks like and see what price the highest bidder paid. That should give you some idea. I hope I helped a little.

You can also check out www.ValueMyCollection.com for pricing information on any collectibles.

175176177
Monopoly (Business)

How was the Hanseatic League a trade monopoly?

There are a couple of ways that turned into a virtual monopoly in certain cases:

The economic and political influence the league had often meant that they could control trade routes and block competition. Also due to scale advantages, they could offer better protection to their traders.

Finally the influence and scale advantages gave the league a negotiation advantage when it came to making exclusive deals with trading partners and gain tax exceptions from leaders.

It effectively became very difficult for unassociated traders to compete, and in some cases even trade at all, in the area where the Hanseatic League held control.

139140141
Monopoly (Business)

How is a monopoly different from an oligopoly?

A monopoly is the exclusive control of a commodity or service in a particular market, or a control that makes possible the manipulation of prices, while an oligopoly is a situation in which a particular market is controlled by a small group of firms.

959697
History
US Government
Monopoly (Business)

What is Monopoly?

What is monopoly?

Monopoly is the exclusive possession or controlover something.

Actually, that's not quite true. It doesn't have to be exclusive. It merely has to be dominating. That is, to have a monopoly of something doesn't mean you have to be the only one with it; it merely indicates that you have a very large portion of it, and are able to control most of the usage of that thing, including holding a severe influence over the usage of even the portion of the thing that you do not own. While this might sound confusing, it's actually rather simple: by virtue of owning most of thing X, you can very much restrict how any other person can use any thing X that they might own.

To be a little more clear here: someone (or something) has a monopoly on something when they control (at least) a very significant majority: 80% is a good threshold for considering a monopoly. What makes the monopoly effective is that since the monopolist owns so much of the item, they can set the price and distribution of the items for the entire market, while either ignoring or driving out of business other suppliers. A big characteristic of what makes a monopoly is that there is a limited supply of the item being monopolized (that is, other competitors can't simply out-produce the monopolist).

Example:

Let's use a some mineral X as an example. There are only so many known deposits of X, and there are significant costs associated with both searching for new deposits, and also buying the land, opening a mine, etc. Company A owns 90% of all the producing mines for X. Company B and Company C each own 5%. Now, in a "natural" market, where each company made say 1/3 the total items, and there was true competition between them, the price for X would be $5. Instead, since A owns a monopoly, several bad things can happen:

  1. Company A can set the price for X to be $10. Since there is a limited supply of X, even if Company B & C set their price to $5, the other two companies can't meet demand at $5, so the vast majority of customers have to go to Company A and pay $10.
  2. Company A can set the price to $3. Since it costs $4 to produce X, they lose money on every sale. However, no one will buy from B or C, since they have to charge $5 (they're smaller, and don't have the cash reserves that A has). Thus, quickly, B & C go out of business. A can now buy their bankrupt competition, and own 100% of the market for X.

There are quite a few other reasons why monopolies are generally considered a bad thing.

656667
Meteorology and Weather
Acronyms & Abbreviations
Synonyms and Antonyms
Monopoly (Business)

What is the opposite of extreme?

For extreme (immoderate), the opposite would be moderate, limited, or mild.

For extreme (extraordinary), the opposite would be average, ordinary, or tame.

For extreme (severe), the opposite would be mild, slight, or minimal.

787980
Monopoly (Business)

What are the differences between perfect competitve market an monopoly market?

This is a rather common question within the Market Structure topic in Economics. In Market Structure, the Perfect Competition (PC) and the monopoly are considered extreme market structures, while other market structures also exist, like the oligolpoly and the monopolistic competition(MC). Before understanding the differences of these 2 market structure. It's important to realize that the PC market structure consists of many firms or sellers in an area or industry. The monopoly on the other hand, consists of a single seller. A good example, would be someone selling things on an island. The differences between the PC and the monopoly market structure are (1) Ease of entry and exit for firms (2) Type of product sold (3) Type of firm (4) Profit in short run and long run. First of all, is (1) ease of entry and exit for firms. For the PC market structure, new firms can easily enter the market structure, as there are no barriers of entry. This means that new firms who knows that there is a profit to be made in some area, location or industry can easily set up a new shop there. For the monopoly, there is substantial or high barriers of entry preventing new firms from entering the market structure. These barriers of entry are created by existing or dominant firms in a monopoly to prevent new firms or competitiors to enter the market structure. The second difference is (2) the type of product sold. For a PC market structure, the product sold is similar. This means that what one seller is selling, is what another seller is selling. Hence products in the PC market structure are perfect substitutes. We also assume that in PC market structure, the consumers have perfect knowledge of the product. This means that the consumers are aware of the price sold in another shop. For the monopoly, the product sold are not perfect substitutes, and can be rather unique. The third difference is the (3) type of firm. Since the PC market structure faces the above 2 characteristics, this means that the firm in this market structure are powerless to influence the price. This means they have no control to increase the price of the product. This is because if they increase the price of the product, and there are perfect competition, firms who increase the price, will lose out to other firms. Hence firms in PC market structure are considered to be Price Takers. Firms in monopoly market structure on the other hand, are Price Makers. This means that they can influence the price of their product sold to consumers. The monopoly is able to do that, as the monopolist is the single seller in a market. The last difference is the (4) existence of profit. For the PC firm, there is a possibility to earn abnormal profit in the short run, but not possible in the long run. This is because, in a PC market structure, when existing firms earn profit, new firms will enter the market structure, shrinking the profit. For the monopoly, there is a possibility to earn abnormal profit in short run and long run, as there is the existence of barriers of entry to prevent new firms to enter the market. Hope this helps. ( although I may have listed the differences here, they are not the only ones, there are others as well, but the rest can be complicated and might need the use of graphs ). (cheong@bgymail.gd.cn)

777879
Monopoly (Business)

What colour is trafalgar square on a monopoly bards?

Red

737475
Monopoly (Business)

Did the medieval church get its power from a monopoly on education?

I would say no, the medieval Church did not get its power from a monopoly on education. There are two reasons for this.

First, the Church did not have a monopoly on education. The Byzantines opened a system for primary education in 425 AD and maintained it until the fall of Constantinople in 1453. They had a policy of having military personnel be at least literate. And even in the West, there was no clear monopoly. The oldest state run school in England, the Beverley Grammar School, was opened in 700. Indeed, Alfred the Great had a policy of seeing to it that those freemen in his kingdom who could learn be given a primary education in English, which is clearly not the language of the Church. And the Church certainly did not teach the Vikings how to read and write in Runes or the Muslims how to read and write in Arabic script. (See reference links below.)

Second, the Church did have two monopolies that were far more powerful. Over all people, it had a monopoly on salvation, without which the person would roast in hell, suffering all eternity, and a lot of people honestly believed this. It also had a monopoly on oaths of allegiance, in the sense that it could relieve anyone of any such oath. When a king was excommunicated, it was usual for the pope to excuse all people who had made oaths of allegiance to that king from that oath. His supporters could be excommunicated for continuing their support, or they could be rewarded for discontinuing it. Kings of other countries were excused from their treaties, and instead given license to invade and profit from their labors.

717273
College Degrees
Economics
Similarities Between
Monopoly (Business)

What perfect competitive market and pure monopoly market have in common?

A perfect competitive market and pure monopoly market both have to follow the "law of demand".

575859
Monopoly (Business)

How do you use monopoly in a sentence?

The CEO of the telephone company claimed that they were a natural monopoly.

012
Monopoly (Business)

Why is walmart considered to be a monopoly company?

It is so, because they sell "Monopoly" the board game.

575859
Economics
Monopoly (Business)

How profit maximizing output and price are determined?

Let the demand facing a firm for its product be expressed by the following functions Q=25-0.5P Where Q=quantity and P=price, and cost function as C=25-2Q+4Q2 Compute a) Profit maximizing output, b) Justify profit maximizing output

495051
Monopoly (Business)

What is the end result of the creation of a monopoly?

One company controls a whole industry.

484950
Monopoly (Business)

What industry did Andrew carnegie control as a monopoly?

He controlled the steel corporation called Carnegie Steel Corporation. He started by working as an assistant to one of the railroad's top officials and about 3 years later he was promoted to superintendent of the company.

535455
Economics
Philippines Jobs and Education
Monopoly (Business)

Why do pure monopolies advertise?

For one, their may be somewhat close substitutes. Microsoft may still advertise because there is the threat of Mac OS, Unix, etc. Major League Baseball faces threats from other sports and non-pro ball.

Monopolists still need to inform their customers of new products or services, as well as maintain their brand image.

whaty

535455
Monopoly (Business)

What is key element in preserving a monopoly is?

keeping potential rivals out of the market.

495051
Monopoly (Business)

Why is monopoly bad for competition?

A "monopoly" means that there is only one firm in the entire industry. Therefore, there is no competition because there are less than two parties involved.

495051
Monopoly (Business)

Excessive monopoly profits represent?

Note: 'Excessive' is not an objective term to use for economics analysis.

Monopoly profits usually represent a form of price mark-up, setting MC = MR and then vertically matching the maximum willingness-to-pay for that unit and all units before it on the demand curve. This is socially inefficient but privately optimal.

495051
Celebrity Births Deaths and Ages
Andrew Carnegie
Monopoly (Business)
Corruption (Political or Economic)

Did Andrew Carnegie bribe?

Possibly, but that would have been a common business practice.

333435

Copyright © 2020 Multiply Media, LLC. All Rights Reserved. The material on this site can not be reproduced, distributed, transmitted, cached or otherwise used, except with prior written permission of Multiply.