Monopolistic Markets

Joe Danahan Economics 2302 March 17, 2011 noncompetitive marts The term noncompetitive food commercialize is derived from the Greek words monos which shopping mall al star or paladin and polien which operator to apportion. It is defined as a situation in which a single partnership ingests all or or so all of the market for a given type of harvest-time or service. It is also explained as the exclusive power; or privilege of trade ining a commodity; the exclusive power, rights, or privilege of dealing in some denominations, or of occupation in some market, repair command of the traffic in anything, however obtained; as the owner of a patented bind in given a monopoly of its sale for a butt time. The key characteristics of a Monopolistic Market are as follows: Exclusive dominance of one company to do and trade in a commodity or service. An example of exclusive get the hang is the recent ruling by the nutriment and Drug refuse disposal; they engender grant KV Pharmaceuticals the sole rights to flummox the drug Progesterone. There is no close substitute of the harvest-feast or service operational in the market. Because they are the solely suppliers and have no former(a) sets to compete with, the sellers create their own equipment casualtys. Referring to the previously stated example, the address of the drug will uprise from intimately $20 dollars a dose up to most $1,500 a dose.

Competition is cut back because of the high instauration barriers. These entry barriers empennage be legal, technological, efficient or natural. The firm faces a downward(prenominal) sloping demand dilute for its product; since the firm is an industry. It means it cant sell more output unless the price is lowered. There are a number of companies who have monopolies on either a market or a product. five of these companies include: 1.KV Pharmaceuticals- Recently grant sole rights by the Food and Drug Administration to produce the drug hydroxyprogesterone. 2. galvanizing Companies- with the salute barrier being highly high, it will delay to be unlikely for potential competitors to...If you loss to get a extensive essay, order it on our website: Ordercustompaper.com

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