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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.
628 Questions
Is production a stock and income a flow?
yes, production is a stock concept and income is a flow concept.
Why does supernormal profit attract entry of new firms?
Supernormal profit attracts entry of new firms because knowledge is everywhere and also the main aim of any producers is to make profit.
Let say for example that there is a market where one producer make a superprofit otherwise said his revenue is greater than his cost of production -in other words after selling his products- his revenue allow him to pay both fixed and variable costs and save an extra money.
This situation will definetely compell another producer who is interested by the same market to enter in (because of the existence of the information which is free to obtain and available to anyone)and also try to make his own supernormal profit. and theinformation will therefore flow from on producer to another and so on.
Remember the competition market states that there are no barriers to enter and exit from the market, outputs are homogeneous, no dicrimination between buyers and sellers.
The competition market is only a Theoretical Ideal! the reality is completely different
Why is the US postal service a monopoly?
One answer: it's a natural monopoly (which means it has huge economies of scale.) A second competitor would need to make enormous investments to duplicate the USPS' infrastructure.
Second answer: it's because of regulation. It's against the law to go into business delivering mail. This prevents new entrants from showing up and taking share away from the USPS.
Third answer: It's because it LOSES MONEY. No startup in their right mind could compete with the USPS based on $0.42 to mail a letter.
What do the monopoly chance cards do?
They say all different things like collect $500 opr bad things like go to jail. I was wondering too though so I'm not quite sure
Why monopoly is inefficient and perfect competition efficient?
It is assumed that they are producing on the lowest point of their Average Total Cost curves, therefore producing the maximum possible output from available inputs and so productively efficient. They are also allocatively efficient because Price is equal to Marginal Cost.
Should the government break up standard oil's monopoly?
The United States Supreme Court said YES, so you can go with their logic.
How do you build a house on iPod monopoly?
I need this too I can't figure it out can someone please help!
What contents are in monopoly?
a dice
2 sets of cards
board
player pieces
instructions
coloured houses
money
Monopoly assumptions in economics?
sole supliers
no close subsstitutes
homogeneous
lack of knowldge of buyers
Is there a website where you can get a free Monopoly code for McDonalds?
In order to get a AMOE code, you need to send a SASE to a certain address. There are several site such as Fatwallet where users post unwanted codes or trade codes for other codes for different programs.
Patents are a form of monopoly that society allows because they are?
Encourage frims to research and develop new products that benefit society as a whole.
Do governments need to curb monopoly power?
It is important, in the first instance to address the issues around the type of monopoly being referred to. Depending on the type of the monopoly structure, the competition laws in effect and the type of good or service being produced by such a firm, then we can assess the extent and degree of government involvement. Government will only intervene when the market has failed and when the monopolistic practices are abusiev or exploting the consumers. It should be government prerrogative to protect its people. Governments can and if there is need or justification curb monopoly power. Government has a duty to observe the laws governing a monopoly and should there be a need, such lwas can be amended to attain some but not limited to the following results, (a) price controls and ceilings; (b) product quality controls; (c ) accessibility to the product; (d) relative information availability; (e) remove or reduce entry barriers to allow for perfect or imperfect competition. There are lots of monopolies that have faced serious challenges when the market was opened for new entrants, yes, governments need to curb monopoly power in suita ble instancec.
What did farmers think about monopolies?
The farmers didn't like monopolies because they couldn't get any workers to work for them.
if you buy out all your competition you have a monopoly.
then you can charge whatever you want, because people don't have aby choice where to but.
kinda like Microsoft
or wal mart
How did the federal regulations control monopolies cartels and trust?
Federal regulations aimed at controlling monopolies, cartels, and trusts primarily involved the enforcement of antitrust laws, such as the Sherman Antitrust Act of 1890 and the Clayton Antitrust Act of 1914. These laws prohibited practices that restrained trade or commerce, such as price-fixing and monopolistic behavior. Regulatory agencies, like the Federal Trade Commission (FTC) and the Department of Justice (DOJ), were empowered to investigate and enforce compliance, dismantling or penalizing companies that engaged in anti-competitive practices. This framework was designed to promote fair competition and protect consumers from the adverse effects of monopolistic control.
What is one type of monopoly the US governnment generally permits?
One type of monopoly that the U.S. government generally permits is a natural monopoly. This occurs in industries where high infrastructure costs and significant economies of scale make it inefficient for multiple firms to operate, such as in utilities like water, electricity, and natural gas. To regulate these monopolies, the government often establishes oversight bodies to ensure fair pricing and service standards, balancing the monopolistic advantage with consumer protection.
