The Monopoly Essay, Research Paper
a) Using Australian examples describe the characteristics of the two of the following forms: Monopoly Oligopoly
The main characteristics of an oligopoly are:
? The market is dominated by only a few companies, which are relatively large.
? The production of identical products which are similar.
? There are significant barriers to entry.
? The interdependence of production decisions within the market.
An Oligopoly market exists in which a small number of firms dominate the supply to an entire market. Each firm producers a very similar product. In Australia the oligopoly is the major market form. It is because Australia is so small market located far from overseas markets and this thus requires producers to be larger, so they are more competitive. There are hundreds of examples of oligopolistic industries, e.g. cars (Holden), breakfast cereals (Kellogs)
This market form does not only depend on the larger producers, but the recognition of their interdependence, the action of one producer will affect the actions of others and each oligopoly firm watches their rivals closely. Oligopolies compete fiercely for market share, therefore the competition for existing or new consumes is intense, as each producers products are very similar. As a result oligopolists have little influence over price. For example Shells petrol is very similar to Mobil petrol, therefore these two companies watch each other closely.
Oligopoly firms attempt to make their products different in the eyes of consumers. This can be achieved in many different ways. Firstly by providing quality improvements in goods or services such as electrical sound equipment, secondly by different packaging or wrapping, thirdly by bonus offers or prizes on purchase, for example Just Jeans offering free sunglasses. The more product differentiation among oligopoly firms, there is a more chance of each firm has being independent from its rivals when setting price or output.
It is hard for new firms with a small market share to enter the oligopoly market and produce enough to make the product cheap for consumers to buy. The small amount of large firms can often produce large amounts of quantity to provide for all consumers to purchase. It is difficult for new firms to win market shares form existing producers, particularly if those firms have large advertising budgets, licenses, design patents or restrict access to raw materials on one way or another. Oligopoly is a market structure, which is especially vulnerable to restrictive trade practices.
The main characteristics of a pure monopoly are:
? Only one seller within the market.
? The goods produced have no close substitutes.
? There are extreme barriers to entry.
? Complete control over price.
A monopoly is an industry in which there is one supplier of a good or service that has no close substitute and in which there is a barrier preventing new firms to enter. The supply of water and gas are local monopolies, while Australia Post, B.H.P and C.S.R. are examples of national monopolies. As there is only on supplier, the firms can chose where on the demand curve the industry will operate. They can either determine the price or the quantity traded. Either they can sell less at a higher price or sell more at a lower price; therefore their decision is based on maximizing their total profits.
The key feature of a monopoly is the existence of barriers preventing the entry of new firms. It is once the firm has entry the market system that is losses the advantage of monopoly control. Some barriers to entry may include; control over vital raw materials, tariff protection from importers, protective government legislation, temporarily low price to force out competition and large research and development budgets to help monopolists maintain their technological advantages over potential rivals. As there is no existence of competition, advertising is mainly focused on public relations or sponsorship of major sports events.
b) How effectively do the two markets forms that you described in part a meet the criteria for a successful market?
A market system exists when producers and consumers interact with one another. For a successful market system to exist the following criteria needs to be meet: does the market? Deliver lower prices, provide greater choice, encourage improvements in the quality of the goods and services traded, encourage the implementation of new technology and foster efficiency in resources allocation and use.
Although there is some price competition in an oligopoly market system the price is still high, as firms compete with one another. But the choice in this market system is better than in a monopoly market system where there is only one product. In a monopoly system like the oligopoly the price tends to be high, as there is only one producer.
Due to in a monopoly being only one seller, there is no close substitute, so there fore there is no pressure to improve the product. Unlike in an oligopoly market system the quality of the product is good, as firms compete with one another and try to improve their products.
New technology plays an important part in both market systems. In an oligopoly there is strong incentive to produce new technology to differentiate each firms products. As in a monopoly market system innovation is needed to maintain a monopoly.
It can be said that an oligopoly market system is more effective than a monopoly markets system, but only at an economic level otherwise it wasteful on advertising. Otherwise monopoly is ineffective to no competition.
In other terms, there is no market system, which fully satisfy the market system criteria. Both of these market systems lack in some features to fully satisfy the criteria for a successful market system. While the oligopoly provides better quality products, it has high prices. While the monopoly has only one product it also has high prices. For a successful market system, both of these market systems need to deliver their prices low.
320
Другие работы по теме:
Microsoft A Monopoly Essay Research Paper Microsoft
Microsoft A Monopoly Essay, Research Paper Microsoft a Monopoly? The potential breakup of the Microsoft Corporation is presently one of the most consuming issues in our society. The government has declared Microsoft a monopoly, and could possibly be broken up into three pieces. This has come as a shock to most everyone, because ?Microsoft Windows? is usually the first thing that pops up on almost everyone?s computer when you first turn it on.
Romeo An Juliet Essay Research Paper hi
Romeo An Juliet Essay, Research Paper hi i need an essay about a character in romeo and juliet that demonsrtated maturity. in a well developed multi pagraph essay and say why you think the character’s maturity was greater than the other characters in the play.
Political Sociology Essay Research Paper Question
Political Sociology Essay, Research Paper Question #3: What strategies as the legal profession used to establish a professional monopoly? In what sense have these strategies been successful or unsuccessful? Why?
Microsoft Report Essay Research Paper Park Place
Microsoft Report Essay, Research Paper Park Place, Boardwalk, Next Stop Microsoft? In the 1920’s and 30’s, Standard Oil became one of the most controlling companies America had ever seen. Under the watchful eye of John Rockefeller, Standard Oil methodically phased out any and all competition. Back then, the government realized what was happening and put into effect the anti-trust law.
Trade In Europe In The 18Th Century
Essay, Research Paper The competition for trading advantages started with overseas expansion at the end of the sixteenth century. It started with the increase in the supply of silver in Europe. That caused for prices to change, which caused inflation. All of this caused furhter economic instabilit. The most visible evidence of the economic expansion in early modern Europe was the overseas trading posts.
Monopolies Essay Research Paper Monopolies Effect on
Monopolies Essay, Research Paper Monopolies Effect on Resource Allocation in IndustryMonopolies are under constant critics from the public and otherproducers of being polutive, straining to competition and they areaccused of worsening resource allocation. Whether this is true ornot, depends on the specific company, but certain characteristicsare possible to define.
Totalitarianism Essay Research Paper I IntroductionPrint sectionTotalitarianism
Totalitarianism Essay, Research Paper I. Introduction Print section Totalitarianism, in political science, system of government and ideology in which all social, political, economic, intellectual, cultural, and spiritual activities are subordinated to the purposes of the rulers of a state. Several important features distinguish totalitarianism, a form of autocracy peculiar to the 20th century, from such older forms as despotism, absolutism, and tyranny.
Microsoft Essay Research Paper By running the
Microsoft Essay, Research Paper By running the Internet Microsoft could set up any programs that they wanted to. Also the software buyer would have to sue it because his system (computer) would only be
Oh Really Essay Research Paper Oh Reallyyou
Oh Really? Essay, Research Paper Oh Really, you think i am a lark, the dogs they run and bark, but when i say to them, shut up shut up shut up, you say to be nice to them,
All I Ever Needed To Know About
Microeconomics I Learned From The Board Game Monopoly™ Essay, Research Paper All I ever needed to know about microeconomics I learned from the Hasbro board game Monopoly. I hope that my teacher does not find the above statement too offensive, and put the zero on my paper before he even reads this. Some people, like myself, need practical models in order to understand certain concepts and theories.
Smoking Essay Research Paper There are four
Smoking Essay, Research Paper There are four distinct markets structures in the American economy. These four markets are, pure competition, pure monopoly, monopolistic competition, and oligopoly. These four market models differ as to the number of firms in the industry, whether those firms produce standardized products, or try to differentiate their products from those of other firms, and how easy or difficult it is for firms to enter the industry.
Mercantilism Vs LaissezFaire Essay Research Paper During
Mercantilism Vs. Laissez-Faire Essay, Research Paper During the enlightenment era, numerous philosophs believed they had the key to a successful economy. Two policies seemed particularly well liked, mercantilism, and the policy of laissez-faire. Mercantilism was an economic strategy depending heavily upon a national monopoly of trade with colonies of a New World.
Monopolies Effect On Resource Allocation In Industry
Essay, Research Paper Monopolies are under constant critics from the public and other producers of being polutive, straining to competition and they are accused of worsening resource allocation. Whether this is true or not, depends on the specific company, but certain characteristics are possible to define.
Shane Essay Research Paper Sometimes I need
Shane Essay, Research Paper Sometimes, I need you more than I need air And sometimes I miss you more than I will forever, never forget the times that we have shaared. The are priceless
Monology Vs Perfect Competition Essay Research Paper
Part 1 In a ?Perfect Competition? there are many firms that sell a product. Most likely it is a single product that they sell, competing against each other. They allow people to come in and out of the market very easily.
Telecommunications Act Of 1996 Essay Research Paper
This paper analyzes the effects on the implementation of the Telecommunications Act of 1996 (”Act”) on US telecommunications markets and is based on my forthcoming book with the same title. The Act is a milestone in the history of telecommunications in the United States. Coming 12 years after the breakup of AT&T, the Act attempts to move all telecommunications markets toward competition.
MicrisoftA Modern Monopoly Essay Research Paper Many
Micrisoft-A Modern Monopoly Essay, Research Paper Many have asked the question of whether Microsoft has turned into a monopoly of the high technology and software industry. This question is an easy one to answer, yes it is. Over the years, Microsoft has used its wealth and influence over the software industry to pull away from the competition by threatening competitors of withdrawing contracts and software deals.
Coke Extract Essay Research Paper Australia Blocks
Coke Extract Essay, Research Paper Australia Blocks Bid By Coke to Purchase Cadbury Beverages The Coca-Cola Company has come under recent fire in most of its international markets. The Chairman Douglas Ivester has made a bold attempt to buy another soft drink Company Cadbury Schweppes. The Australian Government stepped into the transaction saying that Coca-Cola was becoming a monopoly.
Poem She Sat Essay Research Paper She
Poem: She Sat Essay, Research Paper She sat… helpless in her room praying to whatever god there may be to let her call to him. could god ignore such a painful cry?
Dinner At The Homesick Restaur Essay Research
Paper Dinner at the Homesick Restaurant There are two main symbols in Dinner at the Homesick Restaurant. These symbols are the restaurant and the Monopoly game. The symbols are a big part in Dinner at the Homesick Restaurant. They bring out character s personalities and influence literary elements in the novel.
Buffer Stocks Essay Research Paper
- 2. Buffer Stocks - One step a government might take in order to stabilize agricultural prices is to use the technique of buffer stocks. The very basic idea of this is letting the government set a minimum price on agricultural goods. This price will usually be above the price where demand meets supply, so the government must buy the excess quantity produced, in order to stabilize prices.
Monoeng Essay Research Paper Monopoly Business Success
Monoeng Essay, Research Paper Monopoly Business Success Game Owning property, having lots of money, and running a thriving business are parts of the American ideas of success. They are also parts of the board-game Monopoly. The ideas of prosperity within Monopoly remain throughout childhood, and into the adult life.
Year Without Oil Essay Research Paper Opec
Year Without Oil Essay, Research Paper Opec Oil Embargo 1973, The Year Without Oil OPEC Oil Embargo There are several things that come to mind when presented with the picture and topic, but the one that stands out most is shortage. However, shortage is an ironic word to use for it. It wasn?t really a shortage in the fact that the world is out of oil, which being a non-renewable resource will be one day, but it was an incredible 130% increase in price by OPEC, Organization of Petroleum Exporting Countries.
Telecommunications Act Of 1977 And 1996 Essay
, Research Paper Telecommunications Act of 1976 and 1996 These two Telecommunications Acts had the most impact on the United States of America. In the past before the telecommunications act, AT&T had taken over the the age of electronics; three things to be in exact, Voice (Telephone), Video (Broadcast Industry), and Data (IBM).
Capitalism Essay Research Paper The protection from
Capitalism Essay, Research Paper The protection from force, that is, the protection of individual rights, would be achieved through the use of a police force to protect the rights of citizens at home; a military, to protect the rights of citizens from foreign aggression; and a court system to enforce contracts and settle disputes between citizens.
Microsoft Antitrust Court Case Essay Research Paper
As this paper is written there is a landmark court case proceeding in Washington in front of a federal judge. This case involves the charging of the Microsoft Corporation for violating antitrust laws set up by the government to preserve market competition. A general overview of the accusations brought against Microsoft by the Justice Department was given by Hayes in the Scholastic Update article The U.S. versus Microsoft (1999).
Microsoft As A Monopoly Essay Research Paper
My position today is proving to you, Your Honor, that Microsoft has used monopolistic practices and market power to foster a non-competitive climate. According to Webster, a monopoly is the exclusive control of a commodity or service in a given market.
Microsoft Essay Research Paper Microsoft the world
Microsoft Essay, Research Paper Microsoft, the world’s largest company by market value, is accused of acting monopolistic in the computer software industry. Microsoft provides for eighty percent of the computers used, operating system. The operating system is a basic program that loads or boots up your computer to make it perform.
Microsoft Monopoly Essay Research Paper By now
Microsoft Monopoly Essay, Research Paper By now everyone is familiar with the case U.S. vs. Microsoft. What is all this about? According to my two articles, Microsoft, the world’s leading software company, is being sued by the Justice Department joined by 19 states.
UK Welfare State Essay Research Paper Good
UK Welfare State Essay, Research Paper Good health is an important factor to an individual?s welfare. It is an essential prerequisite for the enjoyment of life. For this reason the importance
Microsoft Antitrust Editorial Essay Research Paper Microsoft
Microsoft Antitrust Editorial Essay, Research Paper Microsoft: The Big Bully Stealing Your Lunch Money A monopoly, by definition, is a business or group that engages in unfair and often unethical business practices to control an industry and eliminate all competition that might lessen their profits.