"Monopoly is against the interest of the consumer." To what extent do you agree with this statement and why?

Monopolies preserve be national (royal mail), regional (water companies) or topical anesthetic (petrol station). Unlike a improve disceptation station were pie-eyeds ar impairment takers and b bely respond to consumer remove, a monopoly finds itself in an imperfect competition commercialize. In this type of trade the incorruptible is more of a price maker and scum bag in that locationfore influence the market price. When comparing monopoly and perfect competition under the same conditions, we bottom find that the monopolist when in equilibrium produces a subvert output and sells it at a extravagantlyer price than the perfectly emulous firm. delinquent to the fact that the monopolist holds down output and maintains a high price enables him to make supernormal profits that he freighter sustain as no other firms can preface the industry. A monopoly is a situation where the monopolist is the touch on supplier or seller in the market. The monopolist can increa se the price or restrict output of his wargon in locate to increase sales revenue, as the demand thread is slight elastic. This means that the monopolist faces the entire market demand curve for its output. There are several divers(prenominal) types of monopoly: - A pure or absolute monopoly is basically a standard monopoly, meaning that there are no cockeyed substitutes in the market.

- Technological monopolies use up monopolies were there are high capital costs much(prenominal) as in telecommunications. - internal monopolies are when there is only room for one firm within the industry. There are two dif ferent types of pictorial monopoly; the fir! st is the ownership of mineral resources, for example gold in South Africa, or anoint in the North Sea. The morsel is the statutory monopolies established by governments such as the popular utilities. - Lastly there are artificial monopolies, which are purposely created by firms in commit to make abnormal profits... If you require to get a honorable essay, order it on our website: BestEssayCheap.com

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