\"Owning the Market \" Please respond to the following: In the lesson presented

Question

"Owning the Market" Please respond to the following:

In the lesson presented by Sal on Oligopolies and Monopolistic Competition he creates a two dimensional grid of the market types based on number of competitors and degree of product differentiation. Make sure you view this lesson.

Now apply the lesson and identify one monopoly from which you buy a good or service.

Now apply the lesson and identify one oligopoly from which you buy a good or service.

Now apply the lesson and identify one monopolistic competitor from which you buy a good or service.

Explanation / Answer

Monopoly: Esentially monopolies are single largest supplier whose market share is equal to demand in the market, There are so many examples of monopoly even in todays world. The best examples are utilities companies, Usually in many parts there is only one utility company you buy electricity from, Customer usually pays highest price in these markets.

Oligopoly: It is nothing but market share is shared by very few companies which own the market. In these types of markets there is certain market mechanism that works, but customer is likely to get goods for relatively higher prices.

Monopolistic competitor: In this forms there are 2 or more large companies and they compete with each other, As both are monopolies both are ineffecient, So still customer will pay higher price.

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