A perfect competition is a free entry and leave to industry. It is a standardized kind of product and it offers homogeneous products like Coca-Cola. It includes large numbers of buyers and seller. Other than Coca-Cola, there are other products like Pepsi, Sprite, 7-up and so many more. Therefore, no individual seller can influence the price tag on the product. Sellers like Coca-Cola are price takers as they have to accept the market price. Earnings is maximizing when marginal income identical with the marginal cost. It could make profits in a nutshell run however the income will equal zero as it pertains to long haul.
3. 3 Monopoly
A monopoly has a high barrier for a business to get into the industry. It really is a unique type of product which is a one retailer to many buyers on the market. It provides unique goods to the buyer. For instance, Jabatan Bekalan Air Malaysia is the one industry that provides water supply to the whole country. This is because water can be an essential need for each and every citizens of Malaysia. Monopoly is a cost setter. The potential earnings is when marginal earnings is add up to marginal cost. Because of this, long-run earnings can maintain positivity and it'll cause inefficient outcome resulting inactive weight damage.
3. 4 Monopolistic Competition
A monopolistic competition is a differentiated kind of product and many organizations selling products that are similar but not identical. They have low legal hurdle admittance to the industry. For instance, Popular is a bookstore that offers literature and stationeries. It is a company that rivalling for the same band of customers. For the product wise, each companies like Popular and MPH, their product is at least slightly different from each other. Instead of being a price taker, each company encounters downward-sloping demand curve. Additionally it is a cost setter for monopolistic competition. The maximum revenue is when marginal revenue is equal to marginal cost. It can make revenue in the short-run where in fact the long-run profits are add up to zero. The inefficient outcome will results dead weight loss.
3. 5 Oligopoly
Oligopoly can be an industry that controlled by few large firms. It is the differentiated or standard kind of product. Additionally it is has a higher barrier to enter the industry. For instance, DIGI Telecommunication is one of it. It really is a mobile service provider with there is merely a few in Malaysia. The products could be highly differentiated by branding or homogeneous. It is also a non-price competition. You will discover 3 types of technique for this that is Cournot, Stackelberg and Bertrand. Oligopoly is always max revenue when marginal cost is add up to marginal earnings.
3. 6 Conclusion
Overall, we can easily see that there are a great deal of differences in these four market set ups. Each types of market provide different types of products and causing different cause long-run and short-run.
4. 0 Conclusion
In this, I've learn on how the market comprises of the certain factors like the number of firms operating, the type of the merchandise being produced, the level of profit, the degree of monopoly that all firm likes, the organizations' action, the rates strategy, the amount of outcome and the efficiency of the market and the admittance and exit into the market. All these factors are collectively called as the market structure.
1. 0 Introduction
Microeconomic is a person, household, firm, or industry as an economy's systems in this type of science of economical behavior. Contrast to macroeconomics, the analysis of the aggregate current economic climate. Primarily worried about factors affecting specific economic selections, factor changes influence on the average person decision designers, how their choices are synchronized by markets, and exactly how prices and demand project in individual marketplaces. Theory of demand, theory of the organization, and creation demand for labor and other factors are the main subjects protected under microeconomics.
For this project, I have to elucidate monopoly and its own characteristic. Other than that, I need to differentiate the features of perfect competition, monopolistic competition, oligopoly, and monopoly.
To deliver the results, I have to find sources, information and answers from either the books from catalogue or from the web.
2. 0 Monopoly
2. 1 Meaning of Monopoly
Monopoly is a market structure where there is a single retailer and large numbers of buyers and reselling products which have no close substitution and have a high access and exit hurdle. For the intended purpose of regulation, monopoly electric power exists when sole firm manages 25% or more of a specific market.
2. 2 Feature of Monopoly
A monopoly is a firm that is the sole vendor in its market.
High barriers of entry
Product is unique
Advertising is not necessary
Monopolist can control price or variety but not both
For a good example to the characteristic above, Jabatan Bekalan Air Malaysia is a monopoly company in Malaysia. It's the sole seller on the market. This is due to the firm is the only real supplier of domestic normal water to the citizen. Therefore, the product is exclusive and causes clients and users to use their products since it is an necessities need. Moreover, there are no other firms that can offer this product. Advertising is also not essential for Jabatan Bekalan Air Malaysia since it has become a good sense that in Malaysia, we can only just get water source from them. Advertising in monopoly market is depending on the products sold. If the products are luxurious products or even tourism market, then the monopoly needs some advertising on the product. Jabatan Bekalan Air Malaysia can also control the price or level of their products but they couldn't control both of it jointly.
It faces a downward-sloping demand curve because of its product.
Like a competitive organization, a monopoly maximizes profit by producing the number of which marginal cost and marginal revenue are equal.
Unlike a competitive firm, its price exceeds its marginal earnings, so its price exceeds marginal cost.
A monopolist's profit-maximizing level of end result is below the level that maximizes the total of consumer and manufacturer surplus.
A monopoly triggers deadweight losses like the deadweight losses brought on by taxes.
2. 3 Natural Monopoly
Natural monopolies include general public utilities, such as gas and electricity suppliers. Such companies require large volume of modal and huge assets, which is hard for others to duplicate the products. Due to the importance of it towards society, it is becoming legal. In exchange for the right to carry out business without competition, they're regulated. Therefore, they need to follow the manipulated price from the government and they can't simply ask for whatever price they want. As a rule, they're required to serve all customers, even if doing this isn't cost efficient.
2. 4 Legal Monopoly
A legal monopoly is a company gets an exclusive use of the invented product or process. Patents are granted for a restricted time, commonly it's about twenty years. During this time period, no other companies may use the invented process or product without agreement and contract from the patent holder. Patents allow companies to have a certain period to recuperate the heavy costs of researching and producing solutions and products. An example of an organization that obtained a patent-based legal monopoly is Casino in Genting Highlands, which for a long time held exclusive possession of experiencing a legal casino in Malaysia. Gambling establishment in Genting Highlands provide a legal gamble place for individuals without competition, in other words, it relished a monopolistic position in Malaysia.
2. 5 Exemplory case of Monopoly Firm
Monopoly can be form anticipated to many circumstances, for example:
A organization that has an exclusive possession of scarce source, such as Linux using the Unix-like computer operating-system, it offers monopoly power over this resource and it is the only firm that can exploit it.
Governments may give a firm monopoly status, such much like the Post Malaysia Berhad. Based on the website Pos Malaysia (Record), Post Malaysia Berhad which was given monopoly status back to the first 1800s with the establishment of postal services first in the Straits Settlements (Penang, Malacca and Singapore) and slowly and gradually, it covered the complete Malaya by early 20th century.
Also We Can Offer!
- Argumentative essay
- Best college essays
- Buy custom essays online
- Buy essay online
- Cheap essay
- Cheap essay writing service
- Cheap writing service
- College essay
- College essay introduction
- College essay writing service
- Compare and contrast essay
- Custom essay
- Custom essay writing service
- Custom essays writing services
- Death penalty essay
- Do my essay
- Essay about love
- Essay about yourself
- Essay help
- Essay writing help
- Essay writing service reviews
- Essays online
- Fast food essay
- George orwell essays
- Human rights essay
- Narrative essay
- Pay to write essay
- Personal essay for college
- Personal narrative essay
- Persuasive writing
- Write my essay
- Write my essay for me cheap
- Writing a scholarship essay