Monopolistic Markets

Joe Danahan Economics 2302 March 17, 2011 Monopolistic markets The term Monopolistic food market is derived from the Greek words monos which sum alone or skilled and polien which means to apportion. It is defined as a situation in which a single company avouchs all or or so all of the market for a given eccentric of harvest-time or service. It is also explained as the exclusive power; or privilege of denounceing a commodity; the exclusive power, rights, or privilege of dealing in some denominations, or of avocation in some market, sole command of the traffic in anything, however obtained; as the proprietor of a patented name in given a monopoly of its sale for a rim time. The key characteristics of a Monopolistic Market are as follows: Exclusive dominance of one company to arrive and sell a commodity or service. An example of exclusive stop is the recent ruling by the viands and Drug dribble disposal; they engender granted KV Pharmaceuticals the so le rights to produce the drug Progesterone. There is no close substitute of the mathematical product or service available in the market. Because they are the just suppliers and have no other sets to compete with, the sellers create their own expenditures. Referring to the previously stated example, the appeal of the drug will rocket salad from intimately $20 dollars a dose up to to the highest degree $1,500 a dose.

Competition is restricted because of the high instauration barriers. These entry barriers empennage be legal, technological, economical or natural. The firm faces a downward(prenominal) sloping demand curve for its product; since the firm is an industry. It means it cant sell more output unless the price is lo! wered. 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 granted sole rights by the Food and Drug Administration to produce the drug hydroxyprogesterone. 2. galvanizing Companies- with the cost barrier being extremely high, it will delay to be unlikely for potential competitors to...If you want to get a all-encompassing essay, order it on our website: OrderEssay.net

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