• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Economics- Monopoly Investigation

Extracts from this document...

Introduction

Live Nation and Ticketmaster to merge Two of the largest ticket sellers in the world are hoping to amalgamate in what would become a market altering collusion as the companies would attain market dominance and monopolistic power. A monopoly occurs when a specific enterprise has adequate control over a particular item in the market to establish the terms on which other individuals shall have access to the item for consumption. Monopolies are therefore distinguished by a lack of economic competition for the good or service that they provide.The usual argument against monopoly power in markets is that existing monopolists can continue to earn abnormal (supernormal) ...read more.

Middle

might present a bigger barrier to entry for new firms, but it is a major benefit for consumers since they will benefit from lower prices and since economies of scale occur when a firm is highly developed and effective the consumer will also gain from the improvements that have been made due to the investments a company is able to make because of its supernormal profits. The argument though against monopolies is that if they have a lot of power and don't need to fear new entrants they can set the price is higher than both marginal and average costs leading to a loss of allocative efficiency. ...read more.

Conclusion

It is therefore another reason why monopolies will for the long run welfare of their business invest in new technologies because of the risk of losing their monopoly to new entrants. I believe that the loss of monopolies in china will lead to more and cheaper products in markets such as soft drinks because these products don't have very high barrier) for entry because global players Rest are already established in the market so they have the opportunity to enter like coca-cola was trying bode in the article. There is a chance that the already established monopolies will still here so much power they keep most of the power in the market -But with global players able to enter the market the choice will be better and price will be forced down and quality and verity will increase aswell . ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our International Baccalaureate Economics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related International Baccalaureate Economics essays

  1. Growth and Development Problem Set - IB Economics exam questions and answers.

    growth and income equality (as represented by the share of the poorest 60% of the population). The new insight is that an equitable distribution of public and private resources can enhance the prospects for further growth. ? The 1996 Human Development Report (HDR)

  2. Outline briefly- with a diagram, the key economies and diseconomies of scale, both internal ...

    Managerial economies: Larger businesses have greater scope for the specialisation of labour, employing specialist workers (e.g.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work