Monopoly Market And Income Industry

A monopoly is advantageous to the society and is encourages by the government if there are high fixed costs and very strong economies of scale. At the same time, it could also lead to unequal distribution of wealth; containment of consumer choice; lobbying and unethical spending.

There is just a one person who sells products or services and there are no incentives which help to break this monopoly. There are many monopoly industries in the market. In monopoly, they use patents because they don’t like if someone’s copy their inventions.

Monopolies are quite dangerous economically, and are usually broken up by the federal government, with only two exceptions- electricity, and gas. These are modern examples. A monopoly is the economic term for when a company that makes a product has no competition, and can raise the prices as high as they want. For example, the most obvious and powerful monopoly of the industrial revolution was the railroad monopoly. They made money quite quickly as a shipping company, and destroyed any and all competition as the only transcontinental railroad at the time. It’s leader, Cornelius Vanderbilt came to be considered one of the most powerful people of all time, due to his control over who he shipped for.

In economics, a monopoly is a single seller. In law, a monopoly is a business entity that has significant market power, that is, the power to charge high prices.[4] Although monopolies may be big businesses, size is not a characteristic of a monopoly. A small business may still have the power to raise prices in a small industry (or market).[5]

In this paper I will be discussing the wealth gap. I will also be discussing if there should be a “special” tax to redistribute the wealth. I hope to enlighten the reader of the issue of the wealth gap, and if a tax would help.

By definition a Monopoly is exclusive control of a commodity or service in a particular market, or a control that makes possible the manipulation of prices (Monopoly 2012). Individuals are often time fearful of a company or industry becoming a monopoly because it would control too much of a market share, and do whatever wants; this includes raising prices, to using excess capital to branch into even more areas (Rise of monopolies 1996). The market structure of a monopoly is characterized by; a single seller; a unique product; and impossible entry into the market (Tucker 2011). A monopoly can be a difficult thing to accomplish being that a single seller faces an entire industry demand curve due to the fact it makes up the industry as a

Monopoly is a major problem involved with income inequality. Firms with monopoly power hold a position to set higher prices to consumers. They can then redistribute the income from consumers to the shareholders

Since colonial times, monopolies have been present in the United States’s economy. But as always, with time comes change, and that situation directly applies to the monopolies in this country. A monopoly is defined as the exclusive control of a commodity or service in a particular market, or a control that makes the manipulation of prices possible. Monopolies had a negative impact on the United States due their unfairness to consumers and laborers, they don’t allow for innovation, and they stifle all competition.

Monopolies played a big factor in the 1870’s to 1914. These originally came to the United States with the colonial administration. Monopoly’s refers to a market structure whereby there is only a single firm operating in an economy. Companies though normally characterized by the absence of competition in the market.

2 - Monopoly by definition means no competition. So, unsatisfied customers have nowhere else to take their business. Monopolies can treat their customers like scum and not lose any business. Again, they have little incentive for efficiency.

A Monopoly refers to a market where-by there is one or limited suppliers of a given commodity to the market.

Some sources of income equality rising come from factors such wage imbalance, capital ownership, government taxes, and unequal education. Wage imbalance between skill workers and unskilled has widen more rapidly in recent decades as manufacturers moves their plants overseas and technological advancement continue to evolve leaving the average worker who can acquire new skills behind to low wage labor. As stated by DiEugenio (2014) that the increase in capital gain by the wealthy has also increase significantly causing further widen of wealth between the average worker. Also government policy started in Reagan era on deregulation and progressive tax systems has helped the widening of the income equality as the wealthy is able to find loophole

Income redistribution refers to the concept of transferring income from the wealthy individuals to the less wealthy individuals through social mechanisms such as monetary policies, charity, welfare, land reforms, and taxation among others. Income redistribution affects the entire economy rather than selected groups of individuals. The concept of income redistribution emanates from the existence of income inequalities within an economy. Income inequality depicts a gap between the highest and the lowest income earners in an economy (Tullock 13). Income inequality is sometimes considered appropriate in societies since it acts as an incentive in free market economies, whereby in the absence of inequality, elements of economic stagnation and lack of enterprise would emerge. Conversely, income inequality is criticized on the basis of introducing contributing towards the development of key problems in the society, including progression of poverty levels. This paper seeks to explore the concept of income redistribution and its key pros and cons.

What is a monopoly? According to Webster's dictionary, a monopoly is "the exclusive control of a commodity or service in a given market.” Such power in the hands of a few is harmful to the public and individuals because it minimizes, if not eliminates normal competition in a given market and creates undesirable price controls. This, in turn, undermines individual enterprise and causes markets to crumble. In this paper, we will present several aspects of monopolies, including unfair competition, price control, and horizontal, vertical, and conglomerate mergers.

1. Analyze the fast food industry from the point of view of perfect competition. Include the concepts of elasticity, utility, costs, and market structure to explain the prices charged by fast food retailers.