Economic Coursework

MonopoliesAn economic monopoly is a market that has many buyers but moreover one marketer . In a capitalist familiarity , monopolies are fairly uncommon , but necessary in some cases for some products . There are many examples of ancient and present monopolies , and some examples include power and water profit companies , cable television providers , professional sports teams and the diamond miner and seller , De BeersSeveral factors differentiate a monopoly from a typical for-profit company in a capitalist society . First , the product that the monopoly produces and sells has no close substitutes . An example of this type of unique product is a diamond . Also , a monopoly is protected from potential contender by large barriers to entry and economies of scale .For example , in the power utility market , vast and expensive galvanizing automobile power plants and transmission networks are required to produce electric power and to deliver that essential product to numerous , widespread homes and businesses .

Potential competitors would have to make huge capital investments in pursuit of market share . For a monopoly like this , regime regulation is usually present to act as a watchdog for public consumers . Without regulation over the power application , power producers could charge any price they wanted and consumers would be compelled to buy their product because electricity is virtually essential in today s worldAnother example of an enduring , successful monopoly is the diamond industriousness leader , De Beers . It is a miner and buyer of 70-90 of the world s diamonds and the referee of their prices And...If you want to get a full essay, order it on our website: Ordercustompaper.com

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