negative effects of monopoly

******************** *** ADVANTAGES *** ************* OF ******** ***** Name: Institution ************ ****** Date:  IntroductionThe ***** ******* of ******** ***** *** distribution ** ******* ** ***** ** *** *********** ************* ** resources *** ********* ** *** aggregate ******* Monopoly power ** ******* ********* ** ************ economists for **** ****** The super-normal ******** ******** ** **** *** ***** *** **** **** *** *** ** supra *********** level ** ****** being charged ** ******** ***** desirable ** ************ **** though large ****** of ****** ** ********* by the ********** ***** ** *** ******* these ****** ******** are left ******** In **** essay I **** review *** ******* ************* and ********** ** monopoly ***** *** *** *********** ***** on *** behavior ** *********** * **** then ******* *** ********** *** reviews ***** ********* ** *** **** ************* ****** ********** **** ******** ** a ****** firm ***** *** few ********** ** pure ********* *** monopoly ***** *** **** ***** ** ** ******** ***** ***** ** more than *** firm *** ****** where **** *** ********* ***** is ****** * ******* *** ***** *** ********* exist ** ***** as oligopoly (Fisher ***** ** *** monopoly ****** ********* there ** a single ***** **** ***** *** ******** ***** ******** *********** ******* **** in *** ***** *** **** *** *** firm practices ***** ************** ***** *** ******** *** ***** of *** ***** *** *** its own price ****** in *** ******* *********** ****** ***** ***** ** set by the ****** of demand *** ******* ******** ****** ********* ** undesirable *** ********* reasons   A ********** firm ********* *** profits at ********* *** ****** ***** **** than in *** **** ** *********** market ********* **** ******* * ******* ** ******** surplus ** the firm sells its ***** at *** ***** ** implies **** *** supplier ** allocatively *********** simply ******* at ** ******** **** is **** **** the ***** The monopoly ******* is productively inefficient since ** is *** *** minimum point on *** curve ** *** ******* **** ** ** was * perfect *********** market ********* the **** would produce at price ** ******* ******* ********** ************ ********* and ****** ***************** ************ **** may **** **** minimum ********** ** reduce *** **** ** its ******** *** to **** of ******** *********** Therefore the **** **** ** x-inefficient **** ** ******* *** **** ****** of the ********** **** to ** higher as ******** ** *** **** *** ********* in a **** competitive ******** * ******** may as **** **** *** incentives ** **** in developing new ***** *** ******** *** ***** high quality products **************** *** example ******** ** **** ******** ** service *********** ***** ******* of **** ** adequate competitionSome firms *** ******** ** **** *** ****** *** big *** ****** **** the ******* ** ************ ** ***** ***** ** a very *** ******** ********** ** ********* ** motivate *** coordinate workersMonopolist *** also *** ***** ***** ** ******* *** suppliers ** ****** them ***** ****** *** instance * big supermarket in ********* like *********** *********** *** ** **** ** reduce the ****** ****** *** *** ******* *********** use ***** ****** ***** ** ******* ******* ** their ********* ***** the ********* ** not **** *********** ************ ******* *********** monopoly firms ******** supernormal ******* **** ** *** short and long run hence ******* ** inequitable distribution of *** ********* ** the economyHowever ********* ** ******** ***** ** ** ******* **** *** always affect *** ****** ******** negatively ** *** ** high ***** **** ** particular industry **** ** **** ******** ********* ** ***** ***** *** **** efficient *** ********* ****** of firms ** *** ****** ** ******************* the ****** ******* *** level of quantity ** ***** then *** ****** ** ***** **** ***** be ********* *** efficient ** *** **** **** ** natural ******** ****** in ********** ********** such ** national networks *** ******* ** electricity *** ***** *** gas ************ ** **** ** *** ********** such as *** ******** *** **** high fixed **** and * ***** ***** ** specialization indicating **** the ********* ** ** not too ***** ***** there ** more than ****** **** *** **** ******* **** ********** monopolies *** ******* ***** supernormal ******** to ****** ** innovation ******** *** development For ******** * company **** **** produces ***** *** heavily **** ** ****** ****** ** **** *********** profit **** ** ***** *** **** run ***** ********* the **** cost of ******** ********** and *********** However most ** ********** **** ** *** ************ it ** **** ** ******* ******** as **** ** the ************ have **** limited need for ********** research *** *********** ********** ************ ***** ** an ********** **** ******** firms **** ******* *********** pressure *** ***** **** are x-inefficient (Easterbrook 1990) ******* * firm may acquire ******** power ******* ** being dynamic *** ********* *** ******** ****** ******* is * monopoly but *** ******** ** *** ****** ********* economists **** ** not ******** ** ** *********** ******* desirability of ******** power solely ******* ** the ****** ** *** ****** *** ******** ********* ******* *********** ****** ********** **** **** merits over monopolies ******* ***** However ** **** ********** ******** *** be ********* for ******* particularly ** the industries **** **** ****** ** fixed **** *** **** need profit *** ********** research *** development ** ***** situation the ********** *** ***** **** ***** to ******* ** * ******** *** ******* *** ****** *** ******* ********** ***** such as *********** and ***************** ** ******** ************** of ******* ********** ******** has very high ***** ***** other *** ***** *** likely ** ***** ****** ******* ***** than *** incumbent ******** *********** ** * firm enters *** ******** *** ***** at Q1 ******* ******* **** ********* ******* ********* ** *** and incurring an average **** at ****** economies ** can ***** *** ******* ******* such ** managerial ************** and ********* **** *** ******** *********** ** ********** **** **** **** investments ** ******** ********** *** *** ********** companies ** ************************ *********** ** type ** ******* of ***** ***** the incumbent ********* have * **** ****** ***** loyalty ****** **** *** *** firms ** enter *** *** firms **** ** ***** ***** ****** ** ***** ** ******* promotions such as *********** ******* ** * **** cost *** new firms ******* ****** it **** ** the ***** **** *** **** *** ****** The ******** ******* ****** **** ** coca **** *** ********** ***** ******** unit ** * ********** ******** **** ***** become * ******* *** the entry ** *** ***** *** ******** ********* *** ***** company ** ******** *** ******** ** office ******** This **** **** *** ** companies ** ***** the market because ***** individual ****** ** ** ********** **** ********* ****** has ********* ****** ****** market even ****** it ******** *** ***** ** the ************ ******* to entry may ***** *** ** difficultness to access *** ********* *** ********* *** ******** new ******** may ********** * *** ** ********** ** accessing ******** ******* *** ************** ********* and mergersFirms collude ******* **** **** maximize ******* *** ******** cost ** ***** ******** ** **** ** *** ******* ****** *********** This **** cause prices of goods *** ******** ** ** ** and **** ******** ** *** ***** Since the ***** **** ***** supernormal ******* **** invest ** ********** ******** *** *********** ******* **** ********* are ****** **** some ******** from **** investment *** ******** ** ********** such ** **** *** ********** ********** expensive investment *** ******** ** ****** to develop *** ***** and ******* ********* and formation ** cartels ** ********* *** *** ***** ** **** *********** profits in ***** ** finance ***** investment ******* Although ** would **** ** ****** prices ** ***** and ******** consumers ******* in the **** **** ***** **** are **** ** *** **** ******* ***** and ******** ** maximize ***** utilityHowever ***** ** ** assurance **** *** ********* will utilize the ******* *** ********** *********** *** research ** order ** produce **** ******* ******** They *** **** the ******** to **** ******** *** ********** ************ ** form of ***** ****** ** ********* *** firms *** **** ******* *** *********** profits ** ******* predatory ******* in *** new ******* **** **** ********* *** ******* ** consumers *************** ********* ********* ***** ****** ****** ** purchasing goods and ******** ** ***** ** satisfy ***** ********* ***** *** ******* ********* ******* *** *** * ** *** ***** *** ******** ** ********* ** ************ ********* ******* ***** ** ******* ** ****** ********* *** example there may ** an ******** like the *** ******** ***** highly ********** *** survival ********* *** *** ***** to ******* ** *** ****** they **** collude *** *** ****** ********* **** ** ***** may **** the industry **** **** **** * ******** impact ** *** ********* ******* there ***** be no a variety of ****** *** *********** ********* of ***** ** crucial ** **** ********** of ***** and ******** ***** ******* ***** ** better **** ** ******** that business *********** ******* in * ***** ******** ** ********* *** ********** should ******* ********* to *** industry ********* are *** *** **** ****** ** ******* ************* firms ** ********************* ************* ******************* ** ******* value and ******* ** ****** ** *** ********* It also ******** *** ********** ** *** ******** to ************* ********** through ************ ******** and ************* ********* *** competitions ***** ****** ********* ******* ** ******** *********** and efficiently sustainable ********** and ******** *** *********** ******** *************** The *************** ** *** ******* ** ********* *** been ******** acknowledged For ** 2014-2015 *** ****** ******** *********** ***** Report ******* ********* *** ****** the ****** behind *********** *** **** consecutive ******** ***** *************** ****** ***** **** *** ********** *** ************* ** ************* ******** ** ********* *** been ******* rising *** ********* *** ****** ****** most effective and ********* ** ********** ** unfair competition ** *** ********** *********** ****** *** does *** only **** ****** *********** *** also * ****** ecosystem ***** ** individual firm or ****** ** ***** ***** or *** **** non-market ******** to ***** This ** important ******* ** allow *** ***** of ********** innovation in the ******* to ********* *** ********* firms *** ********* ** ******** new economic models *** levering *** ************ ******* ** Singapore is *** ****** Company ***** provides ****** ****** ******** The **** ****** **** the *********** industry **** ***** *** ***** ** known to ******* **** ****** ** incumbent ***** **** very strong ******** ****** ******* uses to technology ******* ***** and ******** ** ***** ******* a ********** and effective *** **** *** *** ********* ****** ******* *** *********** large ******** *********** ********** ****** and **** ********* machines and ********* *********** entry **** the industry has provide a *********** ********* ** *** ********* *********** firms ** adopt ****** ******** ************** 2005)ConclusionCompetition policy ** an ********* *** effective ***** ** ****** ********* economy to open ****** *** remove all the ********* *** ***** **** ******* ******** ** thrive ******* research ********** *** ************ This befits the consumers *** enjoy high ******* ***** *** * variety of choice in ***** to ** ** ******** their ******* ******* the *********** policy ** ********** ** the *************** *** private ******** ******* *** ********** ***** ********** **** ** ****** ************ *********** *** ********** *** ***** **** *** **** to provide ***** *** ******** ** * given ******** ***** fueling ** ******** ***** **** ********** ******* electricity *** ***************** References Demsetz * **** *** systems ** belief ***** ******************* FH 1990 ************ ******** ** ***** property **** ** & *** Pol'y ** p108Evans ** **** *** ******** of ******** *** ******** ************ ******* ***** ************* FM **** Diagnosing monopoly * ******** ********* * ***** **** ** ******** **** Cyber *********** *** **** of ******** ******** *** ************** Industry *********** (CCIA)Harberger ** 1995 Monopoly *** ******** ********** ** Essential Readings ** Economics *** ****** ********* ********* ************ * 1999 ***** ******** ** ******** *** *** ******** **** ******* monopoly ** *** organised ** ** ******* market-process *** Review ** ******** ********* ***** *************

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