This website uses cookies to ensure you have the best experience. Learn more

Explain The Main Sources Of Monopoly Power

426 words - 2 pages

monopoly is a type of market where there is only one firm producing a good or service for that particular market. Pure monopoly is wen there is a sole supplier with no close substitutes, which rarely happens. A more common thing to happen is monopoly power. Monopoly power can even occur in oligopolistic markets: a market with a few dominating firms producing goods or services. Monopoly power is when a firm can behave independently of competition pressures, due to it’s large share in the market. To have monopolistic powers, a firm should own 25% or more of the market it’s in.

One of the main sources of monopoly ...view middle of the document...

Therefore firms with monopoly power have the advantage of limit pricing: lower prices with higher output. They create a price lower than the average total cost (ATC) of potential entrants into the market. Using their better knowledge of the market, they use this mechanism to send signals saying that it’s impossible for other firms to make profits. They do this because if they set price where MC=MR, also known as the profit maximisation point, then it would send huge signals that would attract other firms to enter this market.

The Minimum Efficiency Scale (from now on referred to as the MES) is the lowest point on the long run average cost (LRAC) curve and is the point where a firm would operate to ensure that it is productively efficient. The MES is affected by numerous ways of returning to scale and achieving economies of scale. The MES can affect how many firms can be in a market, thus also being a barrier to entry itself, as certain firms could be benefitting much more from cost advantages than others. If the MES is low and only a small percentage of the market, then many firms have the opportunity to take advantage of economies of scale, e.g. various chains of restaurants. However, in examples of things like natural monopoly, the MES drops due to there being many more variables and outputs, showing that there is little room in the market for more than one firm.

Other Papers Like Explain The Main Sources Of Monopoly Power

The Power Of Small Wins Essay

5564 words - 23 pages they feel and perform. The power of progress is fundamental to human nature, but few managers understand it or know how to leverage progress to boost motivation. In fact, work motivation has been a subject of long-standing debate. In a survey asking about the keys to motivating workers, we found that some managers ranked recognition for good work as most important, while others put more stock in tangible incentives. Some focused on the value of

The Advantages And Disadvantages Of Main Events Software:

747 words - 3 pages The Advantages and Disadvantages of Main Events Software: The advantages of using main events software would be from using centralized web-based CMS you will have secure remote access from via internet; there is no software to install on your computer this will eliminate desktop maintenances and from this they can maintain and manage all of the electric and physical equipment that will run the programs. Centralized data storage and

Are The Natural Sciences More Reliable Sources Of Knowledge Than Social Sciences?

1858 words - 8 pages Are the natural sciences more reliable sources of knowledge than social sciences? To be able to determine the reliability of knowledge within the sciences, an understanding of what is meant when referring to knowledge is required as well as an understanding of how this knowledge is created. Knowledge has been defined in various ways, depending upon the context is to be used in. As Çakir (2012, p.665) defines it: “Knowledge is the communication

‘The Main Function Of Religion In Society Today Is To Dull The Pain Of Oppression’

640 words - 3 pages Marxists believe that religions main role is to dull the pain of oppression. They believe that religions act is the opium of the masses, and acts as a drug to ‘dull the pain of oppression’. Religion dumbs the pain of oppression by the promise of paradise in the next life. This shown by the Hindu Caste system where the poor believe that they will be rewarded in their next life. Religion also justifies social order. For example the hymn All

-Explain The Potential Effects Of Five Different Life Factors, On The Development Of An Individual-

1564 words - 7 pages P2: Explain the potential effects of five different life factors, on the development of an individual. These are the five life factors on the development of an individual Genetic Biological Environmental Socioeconomic Lifestyle 1: Genetic – Psoriasis. My mother inherited Psoriasis from her mother. What is Psoriasis? Psoriasis is a common skin problem affecting about 2% of the population. It occurs equally in men and women

Evaluate The Literature Which Attempt To Explain The Causality Of Two Emotional Disorders And Explain How Our Body Responds To The Stress Response

1836 words - 8 pages This essay will discuss the causes of two emotional disorders and explain how the human body responds to the stress response. Two causes of emotional disorders, stress and phobia will be discuss. It will also evaluate the theories and literature used to explaining the disorders. According to Eysenck (2008) Emotional disorders affect human behaviour in relation to the cells, muscles, blood, hormones and the nervous system. The biological and

The Feasibility Of Tomato (Lycopersicum Esculentum) As Main Ingredient In Making Tomato Candy Brittles

6739 words - 27 pages decided to make the study. Through conceptualizing the procedures of making the tomato candy brittles, people will have an alternative way of utilizing over-ripe tomatoes into healthy goods. Definition of terms Tomato - the main ingredient in making the candy brittles Sugar - essential ingredient in making the candy; helps harden the candy Corn syrup - keeps the candy moist and maintains its freshness Candy - the desired product of the

Testing The Discriminating Power Of A Social Participation Questionnaire

1030 words - 5 pages hypothesis that the Social Participation Questionnaire (SPQ) is able to distinguish between students with and without disabilities. The questionnaire, developed in 2008 by Koster et al. (as cited in Koster et al., 2009), was designed “for teachers to assess the social participation of pupils with special needs in regular primary education” (Koster, 2009, p. 213). Keywords: social participation, inclusive education,   Testing the Discriminating Power

The Power Of Culture To Create A Better Future

704 words - 3 pages THE POWER OF CULTURE TO CREATE A BETTER FUTURE Culture is a word, etymologically, driven from the Latin language from the word ‘cultura’ meaning to cultivate. This connotes growing of personality. This entails forming the seed of an individual’s character and life into societal structure. By cultivation, one is schooled in the beliefs and practical attitudes of a particular group of people who own the culture. However, the word culture is most

Using Material From Item A And Elsewhere, Assess The View That The Main Function Of The Education System Is To Reproduce And Legitimise Social Inequalities. (20 Marks)

541 words - 3 pages Using material from Item A and elsewhere, assess the view that the main function of the education system is to reproduce and legitimise social inequalities. (20 marks) The education system is one of the most influential institutions in our society, as it 'breeds' children knowledge and skills from a very young age (4-5) all the way to young adulthood (16-18), through set lessons or through the hidden curriculum. Education is said to supply a

Can The Power Of The Supreme Court Be Justified In A Democracy

1369 words - 6 pages Discuss the view that the power of the Supreme Court cannot be justified in a democracy. The Supreme Court: Functions of judiciaries; judicial independence. Membership, appointment process and issues of judicial review; accountability and democratic control. Theories of judicial activism and restraint. The supreme Court is the head of the judicial part of Government in the USA, it acts as an appellant court which can also on

Related Essays

The Main Purpose Of Prototyping Essay

300 words - 2 pages Answers: A. The main purpose of prototyping is to give the users a non-abstract system design that they can evaluate early in the process to avoid costly redesigns later. B. If a prototype is developed using system prototyping, the prototype is a model of the entire system and, if it meets user requirements, can be fleshed out into a full information system. Rapid Application Development (RAD) uses iterative system prototyping to create the

The Power Of Language Essay

1771 words - 8 pages be given more power than the average women. The same goes for Hitlers rule, because even though Jews were losing their jobs and houses, they were grateful to not lose their families. Both societies show us that through the tools of language and manipulation used by the government, it is easy to force oppression on to the people. Sources: http://www.theholocaustexplained.org/ks4/the-nazification-of-germany/impact-of-the-nazi-state/the-role-of-women-in-nazi-germany/#.VSPuqRbN7wx https://www.jewishvirtuallibrary.org/jsource/Holocaust/naziregime.html http://www.academia.edu/1357374/Language_The_Ultimate_Tool_of_Social_Control_

Explain Plato's Analogy Of The Cave

1384 words - 6 pages Explain Plato’s analogy of the cave. Plato’s cave analogy of the cave it this because it is a simple story that has a metaphorical meaning. Plato uses this analogy to show the link between the physical world and the world of forms. Plato thinks that this analogy helps people to understand why the physical world is all an illusion. Only true reality can be found in the world of forms, in which everything is unchanging. Plato’s analogy is

The Five Bases Of Power Essay

807 words - 4 pages The Five Bases of Power Julie Kisman BCOM/230 April 20, 2015 Gloria Davis The Five Bases of Power All too often, we are stuck in a working environment the majority of our day, years, and lives, of people who have different personalities and governing styles than we do. “Power means many different things to different people. For some, power is seen as corrupt. For others, the more power they have, the more successful they feel. For even