We experience monopolies in our daily lives and may not be aware of it. Some examples are USPS, and FPL. USPS is an excellent example as it is a government protected monopoly. It has domain for First Class mail and Standard mail delivery. Due to the Private Express Statutes of 1792 USPS have exclusive rights with a few exceptions. If you reside in Florida, your electricity bill is paid to FPL it is the only provider of electricity in Florida having no competition it services 35 counties. Due to the monopoly the electrical provider has prices can rise and fall at different times.
There are several monopolistic companies in the toothpaste and smart phone markets for instance. Although monopolies and monopolistic companies may seem similar they are vastly different. Unlike monopolies, monopolistic companies do face competition. These companies sell products that are virtually the same but have minor changes. In the toothpaste market there are 4 leading players: Unilever, GlaxoSmithKline, Proctor and Gamble, and Colgate-Palmolive. They all produce the same product but have their own variations. The same applies to the smartphone market. They all have advanced …show more content…
Prices are determined by what the customer is willing to pay for the item or service. Generic products fall under this type of competition due prices and products being the same in essence. A perfect example is agriculture. All farmers in the industry share a small portion of the market. They sell the produce at market price and have little to say at price. Farmers work with low profit margins; when faced with a unfruitful year they sometimes go bankrupt. Another prime example is gold, although expensive, the business of mining it is not too profitable. This occurs because there are many companies that sell the commodities. No particular seller is dominant enough in the market to control
There are several monopolistic companies in the toothpaste and smart phone markets for instance. Although monopolies and monopolistic companies may seem similar they are vastly different. Unlike monopolies, monopolistic companies do face competition. These companies sell products that are virtually the same but have minor changes. In the toothpaste market there are 4 leading players: Unilever, GlaxoSmithKline, Proctor and Gamble, and Colgate-Palmolive. They all produce the same product but have their own variations. The same applies to the smartphone market. They all have advanced …show more content…
Prices are determined by what the customer is willing to pay for the item or service. Generic products fall under this type of competition due prices and products being the same in essence. A perfect example is agriculture. All farmers in the industry share a small portion of the market. They sell the produce at market price and have little to say at price. Farmers work with low profit margins; when faced with a unfruitful year they sometimes go bankrupt. Another prime example is gold, although expensive, the business of mining it is not too profitable. This occurs because there are many companies that sell the commodities. No particular seller is dominant enough in the market to control