![]() ![]() In some cases, monopolies can benefit consumers through the economies of scale derived from production efficiencies that result in reduced costs for items they purchase. ![]() “…market monopolization is a completely natural process for the market since every firm seeks to absorb the whole industry” (p. Monopolies can arise due to a variety of factors, such as barriers to entry, exclusive government licenses or patents, and economies of scale.īorobov and colleagues (2021) believe that: “Opposite to the perfect competition, a monopoly is a market structure characterized by a single seller, selling a unique product in the market” (p. This gives the monopolist extreme power to set prices and manipulate market demand for that particular product.Īs stated by Coppo and colleagues (2020), Monopoly is an economic term that refers to a market structure where one firm or producer has exclusive control over the production or sale of a good or service, resulting in no direct competition (Robinson, 1969). ![]() Teachers, if you assign this article for homework, have the students answer these questions at home, then use them as stimuli for in-class discussion. Comprehension Questions: As you read through this article, our editor Chris will pose comprehension and critical thinking questions to help you get the most out of this article. ![]()
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