Economics 101 Essay example

Submitted By parteaman
Words: 534
Pages: 3

Monopoly Market Structure, is a market structure that is characterized by a single seller, which means selling an exclusive product in the market. In a monopoly market, the seller faces no competition, which means he is the only seller of goods with no close substitute. Oligopoly is the market structure that contains a few firms producing a large share of the industry's output. As in the case of monopoly, reduced competition can result in increased price and reduced production relative to perfectly or monopolistically competitive market structures. Barriers to entry into the Market is the existence of high start-up costs or other obstacles that prevent new competitors from easily entering an industry or area of business. Barriers to entry benefit existing companies already operating in an industry because they protect an established company's revenues and profits from being shaped away by new competitors. Natural Monopoly a type of monopoly that exists as a result of the high fixed or start-up costs of operating a business in a particular industry. Because it is economically sensible to have certain natural monopolies, governments often control those in operation, guaranteeing that consumers get a good deal. In economics, a government monopoly is a form of coercive monopoly in which a government agency or government corporation is the sole provider of a particular good or service and competition is prohibited by law. Economists record demand on a demand schedule and plot it on a graph as a demand curve that is usually downward sloping. The downward slope reflects the negative or inverse relationship between price and quantity demanded: as price decreases, quantity demanded increases. Economies of Scale a proportionate saving in costs gained by an increased level of production. Price Fixing the maintaining of prices at a certain level by agreement between competing sellers. Collusion Improper secret agreement between two or more entities, to defraud or deprive others of their property or rightful share, or to otherwise indulge in a forbidden, illegal,…