Monopoly Industry And Its Economic Effect

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Monopoly Industry and its Economic Effect. We live in a world where different economic systems exist and its existence is can create balances or imbalances in the economical arena. These economic system can be characterized as Laissez-faire economy, command economy and a mixed economy, implemented by each state. Within those segments of economy, a country can have companies following different structures of industries in the marketplace with distinctive levels of competitions. To understand how fluid a country 's economy can be, it would be wise to understand a bit more about the types of industries involved here. An industry can be described in four types; Pure competition, monopoly, monopolistic competition and oligopoly. In the Pure…show more content…
Last, but not least industry is the monopoly industry and this is the industry we will dig further in this discussion. Since monopolistic competition or oligopolistic market structures are the most commons in the United States, it would be very interesting to actually analyse more of the monopolistic structure industry and how that impacts the economy overall. In order to understand more about the monopolistic industry is important to understand the fundamental of this industry. In the monopolist industry only one seller sells a products and take over the control of those products. In this industry there is no close substitutes. Its also important to understand that in order for that to happen this firms are given exclusive protection of production by the government. Not just by the government, but these firms can acquire their monopoly through a smart and efficient free market production and with economies of scale. To better have a picture of a monopoly industry, why not given examples of one major monopoly industry in the world, the Microsoft. Not sure if there is familiar to this product, but if anyone wants to buy its software, windows is the only choice since they are the only ones who provides it. So whether we like windows or not, if there is need for a computer that 's the only one we can buy. Another example, nationally recognized is the U.S postal service, where there is no competition and it’s protected by the government. Whether
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