A Monopoly from Start to Finish

equilibrium. The new company is now run as a monopoly, and this paper shall explain

United States vs. Microsoft is one the largest, most controversial antitrust lawsuits in American history. Many claim the government is wrongly punishing Microsoft for being innovative and successful, arguing that Windows dominates the market because of the product’s popularity, not because of malpractice by the parent company. Others argue in favor of the government, claiming that Microsoft’s practices conflict with the free market ideal. There are many arguments for both sides of the lawsuit, but what the case really comes down to is this: does the government have the right to interfere in today’s marketplace? Or is Microsoft violating laws that are rightfully imposed by the government?

There are many models of market structure in the field of economics. They include perfect competition on one end, monopoly on the other end, and competitive monopoly and oligopoly somewhere in the middle. In this paper, we will focus on the oligopoly structure because it is one of the strongest influences in the United States market. Although oligopolies can also be global, we will focus strictly on the United States here. We will define oligopoly, give key characteristics important to the oligopoly structure, explain why oligopolies form, then give an example of an oligopoly in today’s economy. Finally, we will discuss the benefits and costs in this type of market structure.

Firm under perfect competition and the firm under monopoly are similar as the aim of both the seller is to maximize profit and to minimize loss. The equilibrium position followed by both the monopoly and perfect competition is MR = MC. Despite their similarities, these two forms of market organization differ from each other in respect of price-cost-output. There are many points of difference which are noted below.

This is where industry regulations come. The regulations discourages the monopolies and oligopolies from charging unfair prices for their products.

Price discrimination is where a firm changes different consumers different prices for the same service.

Monopoly isn’t just a board game where players move around the board buying, trading and developing properties, collecting rent, with the goal to drive their opponents into bankruptcy. However, the game Monopoly was designed to demonstrate an economy that rewards wealth creation and the domination of a market by a single entity. Monopoly and Oligopoly are economic conditions where monopoly is the dominance of one seller in the market and an oligopoly is a number of large firms that dominate in the same industry. Even though monopoly and oligopoly coexist in the same market, they do have some differences. In many cases, monopolies arise because the government has given one person or firm the exclusive right to sell some good or service. Since monopolistic markets are controlled by one seller, the seller has the power to set prices too high amounts. Monopoly companies give consumers limited choices on what to pay and what to choose from what is supplied. Oligopoly is consumer friendly because it promotes competition amongst sellers with moderate prices and numerous choices in products. Examples of oligopoly area wireless carriers, beer companies, and different types of media like TV, broadcasting, book publishing and movies. This essay will discuss descriptive section on how monopolies and oligopoly apply to microeconomics; it’s historical backstory, the government involvement with handling monopolies and oligopoly, how it applies to college life and the overall importance to

Colleges and Universities are involved in third-degree price discrimination defined as the difference of prices depending on the factors of gender, sex, geographical location and socioeconomic status.According to Boundless “Analysis of Price Discrimination” “Price discrimination exists within a market when the sales of identical goods or services are sold at different prices by the same provider. The goal of price discrimination is for the seller to make the most profit possible . Although the cost of producing the products is the same, the

As senior biology major Grace Avecilla rolled the dice over and over again and still ended up in jail, she began to realize that the skewed Monopoly game she was playing was a good metaphor for income inequality.

All I ever needed to know about microeconomics I learned from the Hasbro board game Monopoly.

Strategies of our firm In oligopoly market, one important method to increase the market share is to keep the price lower than competitors price. However, because at the beginning of the game, our firm ignored the importance of the plant size, process improvement and the training, our production cost was higher than other firms. So we could not use the

pricing closely, as being out of step with the market can cause dramatic market share changes in a

Price discrimination can be defined as when the same good or service is sold at different prices to different consumers. If we look at this definition of price discrimination, for an example, we can show that price discrimination can be seen in the entrance tickets of parks such as Universal studios; this is due to the fact that there are discounts for children and senior citizens. (Phlips L. , 1983) However, this can be seen as not being discriminative at all due to the fact that if the price difference full reflects the difference in the cost of carrying the good from the seller’s location to the buyers’ location.

The strategy for setting a product’s price often has to be changed when the product is part of a product mix. In this case, the firm looks for a set of prices that maximizes its profits on the total product mix. Pricing is difficult because the various products have related demand and costs and face different degrees of competition.

This chapter sets out the rationale for price discrimination and discusses the two major forms of price discrimination. It then considers the welfare effects and antitrust implications of price discrimination.