Home > Macroeconomics

Question: Outline the economic argument against monopoly. Is there anything, which can be said in favour of firms that have monopoly power?

Answer: A monopoly is an industry where there is a single supplier of a good/service that has no close substitutes. It also has a barrier preventing new firms from entering. These barriers to entry include laws, patent restrictions, product differentiation, brand loyalty and licences. Monopolies can be national (Royal Mail), regional (water companies) or local (petrol stations). The three characteristics of a monopoly are that there is only one firm, there are substantial barriers to entry and the monopolist is a short run profit maximiser. There are four causes of monopolies. They are patents and other forms of intellectual property, control of an input resource, government and decreasing costs....(short extract)

To download the full answer, please Sign in or Register then make a payment or submit 3 of your essays.

  • Subject: Economics
  • Course: Macroeconomics
  • Level: A-Level
  • Year: Not applicable
  • Mark: 61%
  • Words: 1082
  • Date submitted: March 29, 2009
  • Date written: Not available
  • References: No
  • Document type: Essay*
  • Essay ID: 1141

New customer?

Registering is fast
and easy

Welcome back

Easy access

  1. Register with us
  2. Pay for instant access
  3. Or submit 3 essays
    of your own for
    FREE access


Adobe Reader is required to access all coursework & essays. (pdf)
PayPal handles payments on our behalf. All major credit cards and currencies accepted.

A PayPal account is not nessesary.