Monopoly Questions and Answers

QUESTIONS RELATED TO MONOPOLY 1-What is the distinction of the monopoly? 1 The existence of a wizard intersection of the commodity 2 characterized by charges, rising expenditures prevailing 3 the coitus stability of prices 4 There atomic number 18 barriers to enter the industry monopolist 5 non necessary to advertise other Monopoly properties. footing control. In a monopoly, and at the expense of supply in the trade one entity to control and demand, and the degree of the price offered and the control exercised by the institution or individual is greater. Predatory pricing. This feature of the advantages of a monopoly consumers.These be short term grocery gains when prices dropped to meet the demand of rare crop. Suppliers and consumers instantly benefit from an attempt to monopolize the fellowship to increase the sale of business marketing. Price flexibility With regard to the demand for the product or go offered by the society monopoly or individual, and is dic tated by the price elasticity of the ratio of the absolute foster of the increase in prices and demand in the market. Lack of creativity At the expense of absolute control of the market, and monopolies display a tendency to lose ability oer a period of duration.With one product lifetime, and innovative design and marketing techniques sustain seat. Lack of competition. When the market was designed to assist the monopoly and the lack of commercial competition or the lack of goods and viable products shrinking the mise en scene of perfect competition. 2-How monopoly arises Monopoly arises in a change of circumstances there are types of goods and a function does not accept by its nature, or not in the humankind interest to multiple producers, its called natural monopolies, for object lesson to provide the city with water, electricity, or the trains zip between two countries.Often assume the suppose or municipal authorities to wangle these services, or to grant a concessio n to a private company, root to stern control. Monopoly may arise in an industry, the egress of a project, and it seized on other projects. Or as a result of take hold of or merge of small projects in the large-scale project, Monopoly May arise due(p) to agreement between the projects owners in a particular industry to determine the price, or divide markets among themselves, known as (cartel), and in this case there are a number of producers, such agreement among them makes them a monopoly power.Most of the countries have been working on the subject of monopolies control. 3-How we can regulate the monopoly Pricing at marginal salute Economists have for legion(predicate) decades argued the benefits of setting public utility tariffs on the basis of marginal address. This view is explicit in many classic scotch texts on regulation. Price discrimination whizz common objection to marginal-cost pricing is that, in the presence of economies of scale, a simple bilinear price eq ual to marginal cost would not llow the regulated firm to witness sufficient revenue to cover its descend costs. Ramsey pricing In those cases where the regulator is inefficient to set the marginal price for individually service equal to its marginal cost, frugal theory still places central accent mark on reducing the deadweight loss. Incremental cost The deadweight-loss hypothesis has a hard time explaining why regulators fail to pursue policies which are efficient under the conventional sparing theory, such as Ramsey pricing. Price / service stabilityAnother puzzle for the conventional economic cuddle to regulation is the heavy emphasis on price stability. There is a tidy amount of evidence that price and service stability is one of the primary concerns of regulators. choice regulation To encourage the productive efficiency of the monopolist. To eliminate the incentive to waste resources quest to obtain a position of monopoly. To protect the sunk investment of the mon opolist 4-Give just about examples of monopoly type of monopolyThe main characteristicexamplesNaturalAccess to rare and not easily reproducible elements of payoffMonopolies operating in the sphere of production is mineral deposits of strategic importance for the national economy technologicalFeature production in this technology is not complete consumer demand to support many private-enterprise(a) firmsEnterprise for the production of specific goods, such as infrastructure for the operation of natural monopolies GeographicCompetition due to the non-rationality of the territorial limited due to the way out of geographic barriersPublic ransport companies infrastructureInfrastructure mesh a network that supply products between distant from for each one other (both in space and in time), economic agentsBackbone enterprises in energy, rail sway , heat, gas and water supply patentUsing a unique patented technologyNatural monopolies are producing high tech products, such as medici ne StateMarkets cerebrate to the exclusive jurisdiction of the stateDefense, aeronautics administrative commandOperating in a command systemNatural monopolies in the administrative-command system