What Are The Main Causes That Lead To Monopoly

Running Head : Monopoly Main Causes of Monopoly[Writer s Name][Institute s Name]Main Causes of MonopolyDefinitionMonopoly is the term use to localize a adept seller in the market whose seam is at that point on the economies of scale that no each sm tot in ally competitor enters in to the market to compete himExplanationUsually competitors are those who produce the similar crossroads with same quality if there is yet ace seller in the market who have that product which is non the product of whatever opposite company and otherwise sellers do not hold that product , seller of that single product is called monopoliser in this way the soaked who is selling those products which are not similar to the products of other companies has no any competitor in the market Goods that are sell by monopolist have no substitute however in perfect competition there are number of sellers in market who have same goods or their substitute and they examine to compete another seller by selling his productsReasons of Monopoly antithetical From other Market CompetitionsMonopoly has some of the characteristics by which it is different from other market competitions .

It includesMarket consist of a seller who have those products which have no substitute and are not available at any other tight , it is characterized by the single seller characteristicThe substitutes of those goods sell by monopolist is not available in the market so monopoly is the condition in which no scraggy substitute found in marketThere is only one unbendable in market who has goods which are not similar goods to others so this firm has much(prenominal) control over the outlay of goods it is all up to that firm to manage price of good by increasing and decreasing the supplies of goodsCompany engaged in making much(prenominal)(prenominal) goods that have no substitutes is the top company so no one can compete the said firm or a company that it already holds main industry of producing those goodsFrom all this discussion over monopoly one thing which comes is that a firm or company which is in monopoly sell their products with out such market situations like supply and demand changes , if only one firm supply that good in market which is not similar to others obviously every buyer who wants that good should go and buy from them so it is hard to say that in monopoly the monopolist is under pressure of market pressures like changes in price demand and supply , competition by other sellers . except one thing is possible like when a monopoly firm increases price of good much high other competitors in market with the thinking to compete monopolist try to wee-wee the substitute of that good and starts selling of good at degrade price . A monopoly firm whenever increases the price of product it looses much of the buyers because of that high price , so it sells less and whenever it lowers the price gets more buyers and...If you want to get a full essay, order it on our website: Ordercustompaper.com

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