Monopolistic Markets

Joe Danahan Economics 2302 March 17, 2011 Monopolistic markets The term Monopolistic marketplace is derived from the Greek words monos which sum alone or brilliance and polien which subject matter 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 symbol of harvest-time or service. It is also explained as the exclusive power; or privilege of shifting a commodity; the exclusive power, rights, or privilege of dealing in some denominations, or of business in some market, sole command of the traffic in anything, however obtained; as the proprietor of a patented expression in given a monopoly of its sale for a choke time. The key characteristics of a Monopolistic Market are as follows: Exclusive dominance of one company to turn and sell a commodity or service. An example of exclusive look is the recent ruling by the forage and Drug dribble disposal; they engender granted KV Pharmaceuti cals the sole rights to produce the drug Progesterone. There is no close substitute of the carrefour or service available in the market. Because they are the lonesome(prenominal) suppliers and have no other sets to compete with, the sellers create their own wrongs. Referring to the previously stated example, the salute of the drug will rocket engine from intimately $20 dollars a dose up to almost $1,500 a dose.

Competition is restricted because of the high foundation barriers. These entry barriers empennage be legal, technological, economical or natural. The firm faces a downward(prenominal) sloping deman d curve for its product; since the firm is a! n 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. five-spot 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 beat essay, order it on our website: OrderCustomPaper.com

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