Monopoly | EssayIvy.com

Monopoly

Running head: MONOPOLY 1
Monopoly
Name
Affiliation
Due Date
MONOPOLY 2
Monopoly
Monopoly is a market structure which has a single seller who merchandises a particular
unique commodity in the market. The level of competition is diminished as the seller is the only
supplier of the commodity. The commodity usually lacks substitution, and thus, no competition
is experienced by the seller. Remarkably, monopoly is characterized by different factors
including patent, copyright, and ownership of the resources, government license as well as a
highly cost while starting a monopoly business. The above characteristics thus make the business
person who is operating a monopoly business to establish prices and also control the market.
There are different types of monopoly including the natural monopoly, technological
monopoly, geographical monopoly and government monopoly. In the natural monopoly, the
costs are reduced by having one supplier of a given product. A natural monopoly occurs where
there are many factors which make competition unworkable. More so, a natural monopoly is also
experienced in financially infeasible situations. The local telephone carriers are a great example
of natural monopoly where the infrastructure required in creating wireless connections becomes
too expensive for the customers (Foster, 2014).
In a technological monopoly, exists under the rules that a business requires copyright or
patent for the operations to be initiated and continued. As such, the technological monopoly is as
a result of legal protection. For instance, in an electronic business where a patent and or
copyright has been issued, the business prevents its competitors from supplying the same goods
at different prices. Pharmaceuticals are also examples of technological monopoly as the products
precise components making it hard and expensive for the competitors to create similar
commodities (Foster, 2014).
MONOPOLY 3
Geographic monopoly, on the other hand, exists where only one business sells a
particular product to a given locality. The customer basis prevents competition in the geographic
monopoly. For example, in small towns or rural areas where there is a single grocery shop
serving all the members of the location, the supplier conducts geographic monopoly (Foster,
2014).
Government is a monopoly under the necessity, and it is the major governing body in a
given country. The governments are responsible for producing regulations to different
monopolies, and thus the institution itself is a monopoly. Some of the departments that are
controlled by the government include the national parks that are in the country, fire departments,
police departments among others including the holders of the identity cards in the country
(Foster, 2014).
There are two distinct monopolies in UAE; the unique car dealership monopoly as well as
the government monopoly. The car dealership makes revenues through the regulations created by
the government on the prices of the cars produced in UAE. However, the customers are
manipulated by the prices, and the situation would be solved if the monopoly was broken by
competition (Chilton, 2011).
Monsanto and Luxottica are two examples of monopolistic companies in the United
States. Monsanto has been dealing with genetically modified products since its foundation in
1901 and has expanded worldwide and thus a great revenue maker for the United States.
However, the monopoly is faced with challenges which pose a disadvantage including resistance
to GMO technology in different parts of the world. Luxottica, on the other hand, deals with eye-
wears especially glasses worldwide. The products are budget conscious and thus making it hard
MONOPOLY 4
for competitors to supply the same products (Davis, 2018). Most of the customers are thus
limited to the products.
References
Foster, J. B. (2014). The theory of monopoly capitalism: An elaboration of Marxian
political economy. New York, NY: Monthly Review Press.

Place new order. It's free, fast and safe

-+
550 words

Our customers say

Customer Avatar
Jeff Curtis
USA, Student

"I'm fully satisfied with the essay I've just received. When I read it, I felt like it was exactly what I wanted to say, but couldn’t find the necessary words. Thank you!"

Customer Avatar
Ian McGregor
UK, Student

"I don’t know what I would do without your assistance! With your help, I met my deadline just in time and the work was very professional. I will be back in several days with another assignment!"

Customer Avatar
Shannon Williams
Canada, Student

"It was the perfect experience! I enjoyed working with my writer, he delivered my work on time and followed all the guidelines about the referencing and contents."

  • 5-paragraph Essay
  • Admission Essay
  • Annotated Bibliography
  • Argumentative Essay
  • Article Review
  • Assignment
  • Biography
  • Book/Movie Review
  • Business Plan
  • Case Study
  • Cause and Effect Essay
  • Classification Essay
  • Comparison Essay
  • Coursework
  • Creative Writing
  • Critical Thinking/Review
  • Deductive Essay
  • Definition Essay
  • Essay (Any Type)
  • Exploratory Essay
  • Expository Essay
  • Informal Essay
  • Literature Essay
  • Multiple Choice Question
  • Narrative Essay
  • Personal Essay
  • Persuasive Essay
  • Powerpoint Presentation
  • Reflective Writing
  • Research Essay
  • Response Essay
  • Scholarship Essay
  • Term Paper
We use cookies to provide you with the best possible experience. By using this website you are accepting the use of cookies mentioned in our Privacy Policy.