Course Hero Logo

Monopoly Research Paper on Its Principles and Problems Regulation.docx

Course Hero uses AI to attempt to automatically extract content from documents to surface to you and others so you can study better, e.g., in search results, to enrich docs, and more. This preview shows page 1 - 2 out of 3 pages.

The image of the mustached man in an old-fashioned top hat comes to yourmind probably every time when you hear the word “monopoly.” However, itis not only a funny and interesting board game that has existed for 80 yearsnow. Monopoly is an economic structure which is characterized by theabsence of competition on the market and a total control over the productionof particular products or services. The monopoly research paper belowexplains the main principles of monopoly and examines the most importanteconomic problems caused by these structures and the methods of theirregulation.What Are the Principles of Monopoly Power? What Are Functioningand Regulation Problems of a Monopoly?The theory of monopoly has had a long academic history, demonstratingboth the possibilities and the drawbacks of such economic structure. Themonopoly power has a distinct set of principles, which include a single firmthat covers the supply on the entire market, lack of consumers’ choice, andthe absence of competition that reinforces the monopolist’s influence.Because of the consequences of the above principles, monopoly isconsidered a problematic economic structure, which needs to havegovernmental regulations in order to work effectively and keep the marketdeveloping. It seems important to review the principles of monopoly, theirconsequences, and the possible regulations that are used to control themonopolistic markets.Monopoly is one of the most well-studied economic concepts, as it refers tothe specific structure of the capitalistic market relations. In a monopolistmarket, “there is exclusive right of a person, corporation or state to sell aparticular commodity” (Lerner, Abba 55). Unlike the ideal type of competitivemarket, where there are multiple manufacturers and sellers who try tomaximize the revenue while keeping the prices and level of quality oncompatible level with each other, the monopolistic structure means there isonly one subject that provides service or commodity, while all the consumersdo not have alternative suppliers. Again, as Abba Lerner put it, the “power ofthe monopolist – as distinguished from a seller in a competitive market –arbitrarily to decide the price of the commodity” (Lerner, Abba 55). Thus,

Upload your study docs or become a

Course Hero member to access this document

Upload your study docs or become a

Course Hero member to access this document

End of preview. Want to read all 3 pages?

Upload your study docs or become a

Course Hero member to access this document

Term
Fall
Professor
Sena
Tags
Economics, English, Monopoly, monopolist, monopoly power

Newly uploaded documents

Show More

Newly uploaded documents

Show More

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture