410369
Descrição
Mapa Mental por daniel.examtime, atualizado more than 1 year ago
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Criado por daniel.examtime
mais de 10 anos atrás
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Monopolies
- Consumers are exploited as
super normal profits are earned
- Barriers to entry
- High start up costs
- Government regulation
Anotações:
- Although governments normally try to prevent the growth of monopolies, in certain cases they create or preserve them. An example is the Irish mail company, "An Post". The Irish government prevents the entry of other firms into the mail industry in order to ensure uniform prices throughout the country, whether one lives in an isolated rural area or an urban centre.
- Brand loyalty
- High start up costs
- The long run and short run equilibriums of a
monopoly are identical
- Barriers to entry prevent new firms
entering market in pursuit of super
normal profits
- The monopolist continues to make
supernormal profit and the consumers
have no alternatives
- The monopolist continues to make
supernormal profit and the consumers
have no alternatives
- Barriers to entry prevent new firms
entering market in pursuit of super
normal profits
- Wide agreement among economists that
monopolies are bad for the economy and
should be prevented
- Governments often introduce
regulations to control the growth
of monopolies
- Monopolies are
inefficient, with
average cost not at
the minimum level,
and so waste
resources
- Governments often introduce
regulations to control the growth
of monopolies
- Like all market types, we make
assumptions about the existence of
monopolies
- There is only
one firm in the
industry
- The firm aims to
make maximum
profit
Anotações:
- i.e, the firm produces the quantity where marginal cost equals marginal revenue
- The monopolist can
control either the
price charged or the
quantity sold, but not
both
- There is only
one firm in the
industry
Anexos de mídia
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