The Ups And Downs Of Monopolies

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The Ups and Downs of Monopolies Linda Fang Econ 201 Professor Jason Gurtovoy December 16, 2014 Abstract A monopoly is when a single company owns the market of a certain product. Monopolies can be successful, but it is also possible for monopolies to lose money. Monopolies will lose money if the average total cost is greater than the price that people are willing to pay. There are multiple reasons for why monopolies would lose money. For example, monopolies can lose money because of the change in taste of the consumer. Keywords: monopoly, lose, money The Ups and the Downs of Monopolies In a monopoly, a single company owns the market of a certain product. Some characteristics of a monopoly are that it only has one seller, is a…show more content…
Another advantage of a monopoly is that you can set the price to how high or low you’d like. Not only that, but you can make as much or as little of the product as you’d like. Monopolies can also make a huge amount of profit since no one has the same product as the monopoly so there is no competition. Monopolies can also afford to use the latest technology there is. Technology is always advancing and there are always going to be newer products that people use each time. Take a cash register for example. Cash registers used to be very low tech. It used to take a while to punch in all the numbers and use a credit/debit card, but now cash registers are fairly easy to use. Nowadays, cash registers are touch screen and the items are on the screen. It is fast, efficient, and easy to use the cash register. There are also many cons for monopolies. For example there is no competition. Having no competition can both be a pro and a con. People would think that having no competition is a good thing, but if there is no competition you probably won’t be able to reach your full potential. I believe that competition is good in trying to make your product better than the other person’s product. For example if you wanted to get good grades, some people will compete with each other to see who gets the better grade, Because of the competition, you would want to work harder in order to beat the other person and work harder to
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