A Monopoly is One Supplier and Numerous Buyers - 899 Words

Monopoly is where there is only one supplier and there are numerous buyers, where it means that monopoly firms are the only firm in the market, which it means that they control the whole market. In monopoly, as there are no other firms or competitors it means that there are no competition. An example of monopoly is PLN, where it is the only electricity business in Indonesia, where there are no other competitors with PLN. While perfect market is where there are both numerous of suppliers and buyers. Perfect competition is where there are a huge amount of competitors or there is a big competition in the market. There is no exactly a perfect competition yet, but an example of a business where almost reaches perfect competition is stock exchange. In perfect competition, all firms produce an identical or homogenous product where all of the firms are price takers. In a perfect competition, the firms have a perfectly elastic demand curve. Monopoly isn’t always bad for consumers as monopolies make a lot of profit, it could be used for research and development and for innovations. This monopoly firms may use price discrimination which benefits the economically weaker sections of the society. For example, Trans Jakarta provide cheaper cost where it would be beneficial for the consumer, the environment, as there are less private cars, and for the firm, as more affordable price would attract consumers which there would an increase of sales, to increase the market share. This monopolyShow MoreRelatedEveryone Knows Coca-Cola Essay867 Words   |  4 PagesCompetition, Oligopoly, and Perfect Monopoly (Reynolds, 2005). Because of the range of strategies adopted by the seller, market structures may evolve from one type to another during the life of the product (Oligopoly Monopoly, n.d.). On one end of the spectrum of optimal market structure is Pure or Perfect Competition. Perfect Competition is defined as: The theoretical free-market situation in which the following conditions are met: (1) buyers and sellers are too numerous and too small to have anyRead MoreEgt Task 31291 Words   |  6 Pageswho may demonstrate monopoly power in their organization. Monopoly may lead to consumers being exploited (higher prices) and consumers paying way too much for a product. Antitrust laws are federal and state government laws that regulate the conduct and organization or businesses. This helps promote fair competition for consumers. There are four main areas involving the antitrust laws that include agreements between competitors, contractual agreements between sellers and buyers, the restriction andRead MoreThe Attractiveness of Telecommunication Industry in 1998 983 Words   |  4 Pagesalter their strategies and finally how I envisage the telecommunication industry in five years time. 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