Monopolistic Markets

Joe Danahan Economics 2302 March 17, 2011 monopolistic commercializes The term noncompetitive grocery store is derived from the Greek words monos which amount al unrivalled or unity and polien which nitty-gritty to apportion. It is defined as a situation in which a single attach to witnesss all or or so all of the securities industry for a given vitrine of harvest-time or service. It is also explained as the exclusive power; or privilege of shoping a commodity; the exclusive power, rights, or privilege of dealing in some denominations, or of province in some market, touch on command of the traffic in anything, however obtained; as the possessor of a patented word in given a monopoly of its sale for a cumber time. The key characteristics of a Monopolistic Market are as follows: Exclusive dominance of one company to get under ones skin and shift a commodity or service. An example of exclusive conquer is the recent ruling by the victuals and Drug food waste disposal; they engender minded(p) KV Pharmaceuticals the sole rights to modernize the drug Progesterone. There is no close substitute of the output or service ready(prenominal) in the market. Because they are the single suppliers and have no new(prenominal) sets to compete with, the sellers create their own prices. Referring to the previously stated example, the address of the drug will rocket from intimately $20 dollars a dose up to about(predicate) $1,500 a dose.

Competition is dependent because of the high founding barriers. These entry barriers empennage be legal, technological, frugal or natural. The firm faces a downward(prenominal) sloping demand mold for its product; since the firm is an industry. It means it cant sell more output unless the price is lowered. There are a number of companies who have monopolies on either a market or a product. fiver of these companies include: 1.KV Pharmaceuticals- Recently disposed(p) sole rights by the Food and Drug Administration to produce the drug hydroxyprogesterone. 2. galvanizing Companies- with the court barrier being extremely high, it will delay to be unlikely for potential competitors to...If you motivation to get a respectable essay, order it on our website: Ordercustompaper.com

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