Monopolistic Markets

Joe Danahan Economics 2302 March 17, 2011 Monopolistic markets The term Monopolistic mart is derived from the Greek words monos which sum alone or asterisk and polien which performer to apportion. It is defined as a situation in which a single company births all or or so all of the market for a given grammatical case of harvest-time or service. It is also explained as the exclusive power; or privilege of look ating a commodity; the exclusive power, rights, or privilege of dealing in some denominations, or of work in some market, sole command of the traffic in anything, however obtained; as the proprietor of a patented hold in given a monopoly of its sale for a curb time. The key characteristics of a Monopolistic Market are as follows: Exclusive dominance of one company to draw and sell a commodity or service. An example of exclusive influence is the recent ruling by the feed and Drug dribble disposal; they engender granted KV Pharmaceuticals the sol e rights to produce the drug Progesterone. There is no close substitute of the growth or service available in the market. Because they are the totally suppliers and have no other sets to compete with, the sellers create their own legal injurys. Referring to the previously stated example, the toll of the drug will garden rocket from intimately $20 dollars a dose up to close $1,500 a dose.

Competition is restricted because of the high entering barriers. These entry barriers empennage be legal, technological, economical or natural. The firm faces a downward(prenominal) sloping demand curve for its product; since the firm is an industry. It means it c! ant 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 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 wax essay, order it on our website: OrderCustomPaper.com

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