Monopoly, Perfect Competition, Imperfect Competition

Economic analysis of a monopolistically competitive industry is more complicated than that of pure competition because:

In early stages, there is a lot of struggle for profitability. Therefore, drops the profitability of the

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.

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

20. (Perfect Competition and Efficiency) Define productive efficiency and allocative efficiency. What conditions must be met to achieve them?

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.

that fail to bring the latest and greatest products to the table will fail as others succeed.

This essay will look at efficiency between both a monopoly and a perfect competition, and whether a monopoly is necessarily less efficient than perfect competition. Using diagrams and equations reflecting the optimal choice of output, marginal revenue and marginal cost for monopolies, I will explain how efficiency is affected by low levels of production. At the same time monopolies can increase efficiency due to their ability in price discrimination, they price people differently and therefore people pay what they truly believe the good is worth. There needs to be a clear description of the differences between monopoly and perfect competition as well as efficiency; an analysis of deadweight loss and natural monopoly is also important

The game was used to demonstrate the reality of the various social classes based on a census composed of factual evidence of the income and wealth distribution in the United States. The initial money given along with the pre-owned property represented wealth and the money obtained afterwards was considered income. My social class was a car. Early in the game, I earned an income of about two hundred dollars, but the money did last long. From there, I never gained more money but gradually lost money. Yes, the player who was the battleship dominated the game.

In 2007, the market crash in America led to thousands of unemployment and stress. Not just to the United States, but to the world also. Not only does it slow down China’s economic growth but also slows down all other foreign exporters to the United States. There can be many market failures in economics though. In economics, market failures are also known as situations where the allocation of goods and services isn’t efficient which basically says that the supplies and demands are not in balance. Monopoly is a type of system where only one foundation gets to govern or control the supply. In many cases, the foundation gets to bully and control what it can do with the supply. For example, PG&E as the foundation, is the biggest and strongest

You will never make friends by playing Monopoly, but you will definitely make enemies by playing Monopoly wrong. Too often, playing monopoly with my immediate family has ended with tantrums and tears and general uproar. But rarely have I seen the breadth and intensity of pandemonium caused by playing monopoly with my extended family.

Do you think Indian Railway is an example for monopoly market? What are the types of price discrimination that Indian railway practice?

Has the economy ever thought about direct impact from monopoly and oligopoly industries? The structure of a monopoly based industry exemplifies one seller in the entire market. On the other hand, the concept of an oligopoly industry illustrates few sellers that have the potential of making a direct impact in one single industry idea. The economy has depended on the market share of a monopoly and an oligopoly trade. However, a monopoly industry differs from an oligopoly industry due to a monopoly competitor dominates a majority of the market share of many industries and an oligopoly competitor contains few sellers who dominate a market share based on one single industry idea.

On the other hand, not getting a patent right has as many problems if not more. The cost of not having patent protection could be as high as the cost to run the entire business. Consider the above cancer drug example, if there is no patent for your discovery, the prize money from a few awards for your achievement is probably the only benefit you would end. And also, the competitors will take advantage of your invention by making the same product using your method without having to pay for the use. Larger enterprises may take advantage of scale economies to manufacture the goods more cheaply and compete at a lower market price. This will considerably reduce your market share for this product. Even the smaller business

Industry profit margins are much lower as a result firms have no benefit to do R&D and bring in a new product.