Statement of Aim Topic: The impact of a monopoly firm on consumer choice in the electricity distribution industry. Aim: How does the lack of competition in the local energy sector affects consumer choice and consumer satisfaction. Objectives The objective of this internal assessment is to: * Analyze the contribution of JPS to the Jamaican economy * Determine the strategies used by JPS in their service delivery to meet consumer demand * Identify and evaluate the type of market
Free Economics Perfect competition Electricity generation
Pure competition and pure monopoly are the exceptions‚ not the rule‚ in the U.S. economy. In this chapter‚ the two market structures that fall between the extremes are discussed. Monopolistic competition contains a considerable amount of competition mixed with a small dose of monopoly power. Oligopoly‚ in contrast‚ implies a blend of greater monopoly power and less competition. First‚ monopolistic competition is defined‚ listing important characteristics‚ typical examples‚ and efficiency outcomes
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preventing a monopoly to that end benefiting society. B. 1. Oligopoly industries having a few large firms gain market power. In oligopoly industries government regulation and enforcement of industrial and social regulation curtail the few firms controlling the market from the possibility of setting unfair prices‚ limiting competition and collusion resulting in low quality‚ lower production and higher prices. B. 2. A monopoly is the single supplier of a commodity. A natural monopoly such as public
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country and into the United States. 3. Explain & give examples of a Monopoly A monopoly is a market structure in which there is only a single seller of a good‚ service‚ or resource. Pure monopolies are very rare in the United States‚ but there are some forms of monopolies across the country. Many government regulated public utilities are monopolized by the government. Many people believe that Major League Baseball is a monopoly because they are the only organization serving baseball fans
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they otherwise would. Where competition is fierce‚ managers do not have that option. There is a rough congruence between this inequality of fit and the varying strengths of shareholder primacy norms around the world. In Continental Europe‚ for example‚ shareholder primacy norms have been weaker than in the United States. Historically‚ Europe’s fragmented national product markets were less competitive than those in the United States‚ thereby yielding a fit between their greater skepticism of
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big topic. Vertical relationships: Ex. Producer-retailer. Lot of anti-competitive practices (price squeeze: high prices for resources that are essential input to produce a good) Merger control Why do we examine mergers‚ what are economic examples. Ex. Online platforms: Euronex (meeting of buyers and sellers) Objectives of competition policy Still emerging debate on competition policy: should it be a protection of players? We are in liberal economy‚ so all players should be able to
Free Competition law Monopoly Cartel
notes‚ as well as the practice questions. Good luck in your study! MONOPOLY 1. Definition and fundamental sources of Monopoly. ---Barriers to entry (examples?): a. exclusive ownership of a key resource; b. exclusive right assigned by the government; c. economies of scale; d. threat of force or sabotage. 2. Natural Monopoly. ---arises where it’s more efficient for a single firm to serve the society. (Examples? What will happen if we have more than one firm in the market?)
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Profits Market structure of oligopoly Oligopoly is a market structure where there are a few firms producing all or most of the market supply of a particular good or service and whose decisions about the industry’s output can affect competitors. Examples of oligopolistic structures are supermarket‚ banking industry and pharmaceutical industry. The characteristics of the oligopoly are: Small number of large firms dominate the industry High degree of interdependence: the behaviour of firms are
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companies‚ so that they have the power control the market. Because tehre are very few competitors‚ they can charge their products or services more than the market value. It means that they can decide the price for their products and services. Some examples are electric market‚ water supply market‚ and fuel market in Vietnam. Because there is only one electric company and very few company in water supply market and fuel market‚ so that they can decide their price and charge a high price for their service
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and cost effects but it is basically used to compare and contrast the efficiency of the real world. The assumptions of perfect competition are not valid in today’s world because monopoly and oligopoly have taken its place. It is often seen that suppliers exert some control over market price and seek to exploit their monopoly power. Similarly some consumers may purchase a higher or even a lower percentage of total demand thus creating non-allocative efficiency. In addition there are always barriers
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