Monopolies good or bad Essay

A monopoly is a case-by-case companionship that owns all or nearly all of the commercialises for a lawsuit of product or assist. A monopoly is at the opposite end of the market structure. It is where there is no competition for goods or services and a comp all can freely charge a price or interdict market competition. Monopolies keep up three built in assumptions, one seller, no substitutes or competition, and extremely high barriers to entry. Examples of monopolies ar public utilities and US postal Service.So what are the social characteristics of monopolies? They act as the single supplier. The arrangement can gain pass with flying colors control oer the market by becoming the sole provider of a good or service. The lose of competition leaves a company with greater control over the gauge of production. It overly gives the company the ability to pump up prices without the fear of macrocosm challenge by other companies. This forces the customer to either buy from the mo nopoly or go without. A monopoly has access to pickyized information.By doing this, the company maintains complete control over the market. This information may give the company the arrive at of special production practices. The specialized information may also go down in the form of legal tips regarding trademarks, copyrights and patents. Taking control over this special information gives the company an edge while leaving all of its competitors at a disadvantage. A monopoly has a unique product. The organization gains control over the market by offering a product or service that is unlike any other.The product or service does not have a substitution. The company may use specialized information much(prenominal) as legal patents, copyrights and trademarks in order to establish legal business office over the production of certain goods and services. So over all are monopolies good for the rescue? Since monopolies are the only provider, they can set exquisite much any price they choose. They can do this, regardless of the demand, because they have it away the consumer has no choice.Not only can monopolies raise prices, they can also supply inferior products. Monopolies are also elusive for an economy because the producer has no incentive to innovate, and provide new and improved products. Another debate monopolies are bad is that they can create inflation. Since they can set any price they want, they will raise costs to consumers. To answer the questions are monopolies bad for the economy the answer is yes. They are not good for the consumer or economy that is why they are so limited here in the US. practice session Examples Login or Register to see usage examples. Recommended Articles from InvestorGuide. com Short Selling instinct the True Cost of Credit Cards Buying and Selling Bonds treasury Bonds IRAs And The Economy Investing Tips Reasoning by Analogy Id say most of the ideas that have made money for the portfolio have been the head of some for m of reasoning by analogy. One example Applying well-understood U. S. coronation ideas to markets out Read more Related Videos.