Monopoly Monopolistic Market Situation - 1126 Words

The concept of monopoly relates to a situation where a large part of the market if not all, is controlled by one company or group of companies. Monopoly identifies with the market share ownership where one organization supplies a given product to the market in the absence of alternative or substitute suppliers (Trageks, 2010). The case scenario in this study presents a monopolistic market situation. The fact that Futures Unlimited Corporation is the single license owner approved to distribute and control plutonium presents a monopolistic situation. Monopolistic markets post different results on organizations depending on the company s management decisions. Although many monopolies employ the single price strategy in ensuring the maximization of profits, the effectiveness of this model posits a question of fact. A single priced monopoly indicates that elasticity in demand affects a single price monopoly in such a way that increased prices lead to decreased consumption of the commod ities. In this scenario, the monopolistic situation leads to the reduction of revenue as well as profits. A monopolistic organization will only make profits in the situation where marginal revenues exceed marginal costs. In the event a monopolistic market increases production where revenue equals costs, the company experiences decreased revenues as well as profitability. A single priced monopoly likely has a reducing effect on the company s profitability with an extra output. However, theShow MoreRelatedEco 204 Final Paper1488 Words   |  6 Pagesof a situation in a free market to combine an already successful business. They have no competition and they are ready to sell! The management consulting firm they hired will take charge of the advertising, the lay-off of employees, and the new way of operating. After hours on hours of research, I have found there are many opinions. What I do know is the term â€Å"monopolistic competition† is easy to confuse with the term †Å"monopoly.† The two models are characterized by quite different market conditionsRead MoreDifferent Types Of Market Structures1413 Words   |  6 PagesMarket Structures A market is defined as an institution that brings together buyers (demanders) and sellers (suppliers) of a particular good or service. A Market structure is the relationship among the buyers and sellers of a market and how prices are determined through outside influences. There are four different types of market structures. Two on opposite extremes, and two comfortably in the middle. On one end is perfect competition, which acts as a starting point in price and output determinationRead MoreAn explanation of monopoly, oligopoly, perfect competition, and monopolistic competition - a detailed overview946 Words   |  4 PagesThe Australian market is a diverse economic ocean - it has different species of marine life (industries), different swells (market structure) and even hot and cold spots (public companies). One of the key determinates to a successful national economy is the structure of its markets. The main market structures are: 1. Monopoly 2. Oligopoly 3. Perfect Competition 4. Monopolistic Competition Each of these market structures have unique characteristics, and can be classified according to threeRead MoreClassification of Market Structure and Its Importance1552 Words   |  7 Pages CLASSIFICATION OF MARKET STRUTURE AND ITS IMPORTANCE INTRODUCTION In an economy, goods and services are produced for the ultimate satisfaction of the consumers. Therefore, all finished goods and services must be sold to the consumers. The process of exchange of these goods is essential. Thus, market is such a place where buyers and sellers gather in order to buy and sell a particular good or commodity. The term market refers not necessarily to a place but always to a commodityRead MoreTerm Paper925 Words   |  4 PagesMarket Structure University of Phoenix Introduction When a product is produced, the company that produces that particular product falls into one of four categories: pure competition, monopolistic competition, oligopoly, and monopoly. Depending on how many companies are producing a product determines what market structure the company is labeled. Each category determines how a company will use pricing and non-pricing to advance in the economy. The United States economic market is competitiveRead MoreMarket Structures Of The Market1198 Words   |  5 PagesINTRODUCTION Market Structures are classified in term of the presence or absence of competition. When competition is absent, the market is said to be concentrated. There is a spectrum, from perfect competition to pure monopoly. Market structure is the physical characteristics of the market within which firms interact. It involves the number of firms in the market and the barriers to entry. Perfect competition, with an infinite number of firms, and monopoly, with a single firm, are polar oppositesRead MoreWhat Are The Differences Between Market Structures And Will Identify A Group Of Competitive Strategies?1606 Words   |  7 Pagesconcepts toward the competitive strategies of an organization that operates in respective industry. This essay will evaluate the differences between market structures and will also identify a group of competitive strategies consistent with the market structure that best aligns with the market in which the organization competes. Additionally, assessing the market structure positively and negatively affects the organization s ability to earn an economic profit over time and evaluate the effectiveness ofRead MoreA Monopoly from Start to Finish1181 Words   |  5 Pagesterm we have learned a lot about a Monopolistic way a company is able to maneuver in the business market and I would like to refresh your mind by offering a clear definition. A M onopoly is a situation in which an entity, either an individual or an industry or organization, is the sole supplier of a particular good or service. As such, this supplier has no competition from other suppliers and is able to control the market value of the commodity. Some monopolies are government-enforced or controlledRead More`` Rent Seeking And The Marking Of An Unequal Society `` By Joseph E. Stiglitz1601 Words   |  7 PagesMarking of an Unequal Society†, Joseph E. Stiglitz discusses the inequality created by monopolistic businessmen and suggests that American government need to regulate the economy and trading system. He defines some of those monopolists as rent-seekers who do not create new profits into the society, but take advantage over others to acquire wealth. Tim Wu, the author of â€Å"Father and Son†, talks about the monopolies within information world – the competition between Apple and Google. Apple first â€Å"opened†Read MoreTopic: Profit Maximization of a Firm.1326 Words   |  6 Pagesstructure of the market it is operating under. As mentioned earlier, firms profit maximizing output decisions take into account the market structure under which they are operating. There are four kinds of market organizations: perfect competition, monopolistic competition, oligopoly, and monopoly. Perfect Competition Perfect competition describes markets such that no participants are large enough to have the market power to set the price of a homogeneous product. For a market structure to be