A Definition Of Monopoly Economics Essay

A Definition Of Monopoly Economics Essay Monopoly is an industry that has only one firm that sells a good which has no close substitutes. Monopoly firms also represent industries because there are no other firms in the market. Products that are from monopoly market are electricity, water, cable television, local telephone services and many more. Examples of monopoly firm in Malaysia is Tenaga Nasional Berhad, TNB’s unique position as a monopoly in the generation, transmission and distribution of electricity in Peninsular Malaysia. TNB is the only firm that provides us electricity to every building in Malaysia. Another monopoly firm in Malaysia that only provide sewerage services is Indah Water Konsortium Sdn Bhd. Indah Water Konsortium is the only firm in Malaysia that mainly responsible for operating and maintaining the public sewage treatment plants and network of underground sewerage pipelines. Characteristics of Monopoly Market One seller and large number of buyers Monopoly market characteristics are they is onl y one producer or seller in the market and there are many buyers. Therefore, the firm had the power to control the whole market whether it is from the angle of determining the price or the quantity of production. A monopolist has the power to determine the level of price because there is no competition from other firms. Therefore, if the monopolist intends to sell a bigger quantity, it has to reduce the price. This means that the monopolist can only control the price or the quantity of sales, and not both at once. No close substitution Furthermore, monopoly firm’s goods have no substitutes, its means consumers have no choice other than what is produced by the monopolist and they can’t find any substitute of the product. For example, Telekom Malaysia is a firms that provide home telephone services which has no close substitutes but if the buyer can find another firms that provide home telephone service therefore the product is no longer in monopoly. Restriction of entry of new firms All the competitors are prevented from entering the market due to strict barriers to the entry of new firm. To restrict the entry of new firms into the industry, there are barriers to entry that are natural or legal restrictions. There are no competition faces by monopolist is because of barriers of entry. Advertising A monopolist doesn’t need to advertise their product or services to increase sales because monopolist had the right to control the market and consumers know where to obtain the products and they have no choice to buy from other producer. Monopoly firms that provide local public utilities such as water, electricity and home phone services doesn’t need to advertise since they are the only firms that provide it and customers had no choice to buy it from another firm. Intro to Question 2 It is traditional to divide industries into categories according to the degree of competition that exists between the firms within the industry. There are four such categories. First of all is perfect competition is the market where there is a large number of buyers and seller. The goods sold in the market are homogenous where most of the goods are alike and most likely the same. Therefore, sellers can easily enter and exit from the market. Most of the agricultural goods are included in perfect competition market such as vegetables, fruits, rice, coffee beans, wheat, primary commodities, gold, silver and others.

Marketing Essay Example | Topics and Well Written Essays - 500 words - 41

Marketing - Essay Example The author performed content analysis of the number of websites operated by leading fashion retailers along with three large supermarkets in UK. The author, while selecting the sample, focused only on choosing retail stores along with super store chains however there was no appropriate method was adapted. This article offers an insight through content analysis as to how the online branding is done by the retailers. This study was conducted by observational research methods through content analysis. Observational research methods are particularly suitable in situations where behaviors are observed. By performing cohort analysis, researcher therefore has attempted to offer a deeper insight into the similar traits and characteristics of the group of retailers in UK. However, this study is only limited to content analysis and as such does not offer any other insight obtained through other means of research like obtaining primary data through interviews or through circulating questionnaire to gain the responses of the managers. This research is limited due to the fact that it only takes into UK fashion retailers however, it fails to take into account how these retailers and their branding strategies actually affect their marketability. I.e. study does not provide any indication of how online branding strategies are helping firms to achieve their strategic goals. Observational studies however, often time consuming and selection of the sample can be difficult to obtain. Since such methods are time consuming, therefore changes that take place over the period of time due to changes in the consumer preferences may not be measured appropriately. Since observational research methods often involve certain ethical issues therefore the overall reliability may not be entirely to the complete satisfaction of the researcher. It is also imperative that the researcher may not be able to obtain entirely correct

Annotated Bibliography Research Paper Example | Topics and Well Written Essays - 4250 words

Annotated Bibliography - Research Paper Example Shocking too is that almost half the group had undergone some form of mental or physical abuse. According to Alsbjer (3), the experiences that the AAS users had from school were in most cases negative and were accompanied by LDs (learning difficulties), boredom, as well as concentration problems. The current circumstances of the interviewees included theft, illegal possession of weapons, crimes such as assault and wife battering, and abuse of other drugs. Their stories on the development of drug use varied significantly taking into account social background, onset of drug use, relationship to use as well as experience of the effects of AAS. Initially, all patients had experienced positive AAS effects, but with time the negative consequences overrode them. It was found out that all of them were given to excess gym training and combined this with steroids an indicator that the use of AAS has a close relation to gym training. This source’s only bias is the dwelling mostly on adults and their current endeavors to recover from AAS abuse and addiction. This shortcoming can be countered or covered by arguing from the point of view that those under observation give accounts of having started the abuse of steroids in their adolescence or teens. The source fails to consider the possibility of teens from well off families starting to use steroids as a matter of peer pressure and to enhance their looks albeit citing social difficulties and mental issues as the cause. This possibility is factored in, in most of the other sources. The audience for the material in this source would specifically be AAS users to help them understand the hidden reasons behind AAS use from the interviewees’ accounts of their stories. This source is appropriate for my research by providing some effects of AAS use such as acting as a gateway to abuse of other drugs, as well as connection to criminal activities. This source h as