Economic Coursework

MonopoliesAn economic monopoly is a market that has many buyers but except one marketer . In a capitalist familiarity , monopolies ar fairly uncommon , but necessary in end to cases for some products . There are many examples of ancient and dedicate monopolies , and some examples include federal agency and water profit companies , line of business television providers , professional sports teams and the baseball diamond miner and seller , De BeersSeveral factors tick a monopoly from a typical for-profit company in a capitalist society . First , the product that the monopoly produces and sells has no close substitutes . An example of this type of unique product is a diamond . Also , a monopoly is protected from potential contender by large barriers to entry and economies of scale .For example , in the power utility market , vast and expensive galvanizing political machine power plants and transmission networks are required to produce galvanizing power and to deliver that essential product to numerous , general homes and businesses .

Potential competitors would have to make huge capital investments in pursuit of market share . For a monopoly like this , government activity regulation is usually present to act as a watchdog for public consumers . Without regulation over the power operation , power producers could charge any price they wanted and consumers would be compelled to buy their product because electricity is virtually essential in today s worldAnother example of an enduring , succes sful monopoly is the diamond industry leade! r , De Beers . It is a miner and buyer of 70-90 of the world s diamonds and the reviewer of their prices And...If you want to get a full essay, order it on our website: OrderEssay.net

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