Understanding the Market Conditions and Monopoly Power with Myhomeworkhelp.Com
The only motive of any business is maximizing profits.To achieve this, only the whole economic system runs. Consumers play a major role in any economic system;equally, it is also very important how a producer work to satisfy consumers for goods demanded. Demand, supply, and the organization’s profits are, depends upon market situation.
In market situation, the word monopoly is a combination of two words i.e. “mono” and “poly”. Mono means one or single and poly is control. So, monopoly is a market structure where a single firm or producer completely controls the supply of a particular good and has the power to fix its prices. In monopoly, a product has no close substitute and has the market power to charge whatever one wishes.Sources of monopoly power homework help are provided by our experts to get specified knowledge about it.
In Monopoly, the whole market is captured by a single firm or authorised group of firm which work together. They charge highly and restrict any other company to get entered in the same. Generally this kind of structure needs a great investment and consumers and regulators don’t like monopolies. Generally Monopolies exists due to-
- Government licence
- Ownership of resources
- High starting cost
Sources of Monopoly:
Amonopolist has the complete power of the goods to supply. But a consumer could decide what quantity one can consume on a specific price. If the prices are good, the more one will consume. Described sources of monopoly power assignment help can be taken through our expert. Some sources which force monopoly:
Barriers to entry:
There can be many boundaries in which no other supplier, producer or distributor can’t enter. Barriers to keep another firm out of the market like patent, copyright, etc. Curves, graphs, and the relation with demand elasticity are explained in Sources of monopoly power homework help.
- Geographical barrier: A place where a distributor or supplier exist n customers have to get goods from them only then supplier has the power to fix the prices and can maximise the profits as customers have no other option to go.
- Legal Barriers: People trust the government more. If authentication from government granted, the firm leads to monopoly. Ex. Licence or copy right.
- Natural monopoly: The financial and natural resources inscriptionsease the power of monopoly. The frequency and easily available resources increase the monopoly.
Number of Competitors:
If the number of firms increases in the market, monopoly power decreases. The demand for a product and profits in its business attracts new firms in the market. Avail our sources of monopoly power assignment help from experts and get a clear concept in economics.
Unawareness of consumers:
If consumers have alack of information about the related options of goods, this leads the consumer to buy a certain product, which build up monopoly power.
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A pure monopoly is very rare in today’s business. Every business has their competitors, so no one company can rule the market. More information is available on the sources of monopoly power homework help at myhomeworkhelp.com.So avail our services right now!