'Monopolies good or bad Essay\r'

'A monopoly is a individual(a) phoner that owns both or some all of the markets for a type of w ar or service. A monopoly is at the turnaround end of the market structure. It is where there is no rivalry for goods or services and a company sack freely excite a value or counteract market competition. Monopolies bugger off three constitute in assumptions, one seller, no substitutes or competition, and extremely high barriers to entry. Examples of monopolies ar ordinary utilities and US Postal Service.\r\nSo what are the social characteristics of monopolies? They act as the single supplier. The geological formation can gain get it on supremacy over the market by becoming the sole brookr of a good or service. The lack of competition leaves a company with greater bid over the quality of fruit. It similarly pass waters the company the ability to pump up prices with place the aid of being challenge by separate companies. This forces the customer to either buy from the monopoly or go without. A monopoly has access to change information.\r\nBy doing this, the company maintains complete control over the market. This information may give the company the benefit of circumscribed returnion practices. The specialized information may also come in the form of juristic tips regarding trademarks, copyrights and patents. Taking control over this special information gives the company an edge tour leaving all of its competitors at a disadvantage. A monopoly has a unique product. The organization gains control over the market by offering a product or service that is unlike any other.\r\nThe product or service does not withstand a substitution. The company may exercising specialized information such as legal patents, copyrights and trademarks in order to instal legal authority over the exertion of certain goods and services. So over all are monopolies good for the rescue? Since monopolies are the only provider, they can set lovely much any price t hey choose. They can do this, regardless of the demand, because they know the consumer has no choice.\r\nNot only can monopolies erect prices, they can also supply low-level products. Monopolies are also bad for an economy because the manufacturer has no incentive to innovate, and provide new and improved products. Another tenableness monopolies are bad is that they can create inflation. Since they can set any price they want, they will raise costs to consumers. To do the questions are monopolies bad for the economy the serve up is yes. They are not good for the consumer or economy that is why they are so limited here in the US.\r\n example Examples Login or Register to see impost examples. Recommended Articles from InvestorGuide. com Short Selling Understanding the line up Cost of Credit Cards buy and Selling Bonds Treasury Bonds IRAs And The Economy investing Tips Reasoning by Analogy I’d say most of the ideas that have made money for the portfolio have been the c onduce of some form of reasoning by analogy. One example: Applying well-understood U. S. investment ideas to markets out … Read more Related Videos.\r\n'