Critics of oligopolies suggest that because there are

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Unformatted text preview: ated by Viacom, Disney, and Time Warner, and the major firms in the U.S. defense contractor industry are Boeing, United Technologies, and Lockheed Martin. Critics of oligopolies suggest that because there are few sellers, price competition among firms is not desirable because it leads to reduced profits for all producers.22 The final point on the continuum, pure monopoly, occurs when only one firm sells the product. Monopolies are common for producers of goods considered essential to a community: water, electricity, and telephone service. Typically, marketing plays a small role in a monopolistic setting because it is regulated by the state or federal government. Government control usually seeks to ensure price protection for the buyer, although deregulation in recent years has encouraged price competition in the electricity market.23 Concern that Microsoft’s 86 percent share of the PC operating system market is a monopoly has led to lawsuits and consent decrees from the U.S. Justice Department and fines from the European Union.24 CHAPTER 3 SCANNING THE MARKETING ENVIRONMENT competition Small Businesses as Competitors While large companies pro...
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