Sign In
Ask Question
Allisson Shields
Business
14 February, 00:16
Describes how a monopoly controls an industry
+5
Answers (
1
)
Aspen Landry
14 February, 00:22
0
Key ideas:
A single entity controls the flow of the product. Possesses the power to limit prices. Will have some influence in politics. Difficult for new companies to enter the market.
Explanation:
Monopoly refers to the state when there is only one company controlling the flow of products, therefore controlling the prices of it. There are a lot of examples of monopoly in the contemporary era such as AB Inbev, but it doesn't mean that it is totally a modern concept. Monopoly existed even in history take for example the case of Carnegie steel mills or the issue of railroads.
When one company possess such power that it can control the price, it can badly damages the interest of other investors and consumers. But the reason they create a monopoly is that they have heavy influence in politics. That is how they turn up the decisions to their own benefits. And monopolies always try to create hurdles for new investors to get in the market. Because they are charging whatever they want due to no competition, as soon as new competition arrive it will challenge the monopoly which it can't take.
Comment
Complaint
Link
Know the Answer?
Answer
Not Sure About the Answer?
Find an answer to your question 👍
“Describes how a monopoly controls an industry ...”
in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
How do firms use marketing? A firm might use marketing to A. identify the long-run equilibrium price where firms break even. B. shift the demand curve for their product to the left through advertising. C.
Answers (1)
Travel advances should be reported asa. receivables. b. cash because they represent the equivalent of money. c. investments. d. none of these answers are correct.
Answers (1)
Atburex is a furniture manufacturing company in the United States. The company provides a 60-day credit period and also offers on-site delivery and installation.
Answers (1)
Cheyenne Corp. had the following transactions during 2017: 1. Issued $212500 of par value common stock for cash. 2. Recorded and paid wages expense of $102000. 3. Acquired land by issuing common stock of par value $85000. 4.
Answers (1)
Due to economies of scale, average costs decline as:
Answers (1)
New Questions in Business
A movie company makes 500,000 DVDs of one of its latest releases. It sells 300,000 of them before the end of the second quarter, and holds the others in its warehouse. How will the 200,000 unsold DVDs be treated in the GDP statistics?
Answers (1)
Which is a primary activity in Porter's value chain model? A. finance B. procurement C. human resources D. outbound logistics
Answers (1)
During the past six months, 73.2% of US households purchased sugar. Assume that these expenditures are approximately normally distributed with a mean of $8.22 and a standard deviation of $1.10. 99% of the households spent less than what amount?
Answers (1)
You just inherited?$12 comma 00012,000. while you plan to squander some of it? away, how much should you deposit in an account earning 44?% interest per year if? you'd like to have?$12 comma 00012,000 in the account in 88? years?
Answers (1)
Inc.'s capital structure features 40 percent equity, 60 percent debt, and that its before-tax cost of debt is 9 percent, while its cost of equity is 15 percent. What will be TapDance's WACC? (Round your answer to 2 decimal places.) WACC %.
Answers (1)
Home
»
Business
» Describes how a monopoly controls an industry
Sign In
Sign Up
Forgot Password?