Monopolies

A detailed Summary of Monopolies

Monopolies are under constant critics from the public and other

producers of being polutive, straining to competition and they are

accused of worsening resource allocation. Whether this is true or

not, depends on the specific company, but certain characteristics

are possible to define. It is these I will describe in the

following, and hence conclude if monopolies worsen or improve

It is important to distinguish between competition and monopoly

before describing advantages and disadvantages of both. Many

monopolies are government owned. This means that the incentive to

strive for more profit, better conditions etc. is gone. This is due

to the fact that, if there is a loss, the government will cover it,

and government owned companies seldom strive to achieve maximum

profits. A lot of the characteristics are also seen in privately

owned monopolizing firms. When they become

is practically gone, the incentive to make even more profits, and

furnace might need a crew of 24 men working night and day, to fully

will strive to utilize the workers at a maximum level, due to the

obsolete etc. are important factors, which stimulate productivity.

beginning of the 80's, like IBM, are now realizing that nothing

men, but the smaller firm might not have the money to hire all the

It is therefor obvious that the competitive industry will try

Approximate Word count = 636
Approximate Pages = 3 (250 words per page double spaced)

Category: Miscellaneous

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