Monopoly Industry And Its Economic Effect

1695 Words Jan 21st, 2016 7 Pages
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 competition, there are many competing companies that are selling or supplies the same exact products or services. In this industry, the best way to understand it there will a small control or power and most of the times buyers have extensive knowledge of the products in which they. Monopolistic competition is an industry where there are many firms selling closely similar products. In this industry the competition runs high. That slight change of products makes the firm highly competitive. This is one of the common industries predominantly in the Unites States economy. The third industry, the oligopoly, a small group of firms takes over the majority of the sales. It’s a more of domino effect where a major aggressive change in one company…
Open Document