The OFT may then refer the companies to the Competition Commission (formerly known as Monopolies and Mergers Commission).
The Competition Commission also plays a major role to investigate the situations which are called 'Oligopoly Situations' which involve explicit or implicit collusion between firms. Then the Competition Commission decides if the monopoly is acting against the public interest or not. And if they find a firm with a monopoly situation they recommend measures such as:-

Price cuts

Price and profit controls removal of entry barriers breaking up of the firm which is rarely a recommendation

If a monopoly situation exists, the workers and managers would take a great advantage by using less technique, knowledge and expertise in producing a good and would enhance their means of profits. Thus the good would not be much to the standards, as it would be in the perfect competition. This is known as X-inefficiency (rownless, C, 1989, P218),…...

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Bibliography

BPP Business Core Unit 4 Organization, Competition and Environment

Brownless, C, (1989) Economics Charles Letts & Co Ltd.

Brownless, C., Hurd, S., & Randall, K. (1985). BASIC economics. Butterworths BASIC series. London: Butterworths.

Sloman, J., & Sutcliffe, M. (2002). Economics. Harlow, England: Prentice Hall/Financial Times.

Monopoly
Radical Treatise on Monopoly

When a firm is the only seller or supplier of a good or a service for which there is no close substitute, it is referred to as a monopoly. roadly speaking, every firm would naturally like to have a monopoly given that monopolies do not face competition. However, monopolists can only succeed in a market situation where the barriers to entry are very high (rue & McConnell, 2007; aumo & linder, 2008; Miller, 2011; Hubbard & O'rien, 2008). As was reported in Hubbard & O'rien (2008), there are four instances where the barriers to entry can be high enough to keep out competing firms:

The entry of more than one firm into a market is blocked by the government;

One firm has a natural monopoly due to the fact that the economies of scale are very large;

The key resources needed to produce a good or a service are under…...

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Bibliography

Baumo W.J., Blinder A.S.(2008): Economics -- Principles and Policies. Mason, OH:

South-Western Cengage Learning.

Brue S.L., McConnell C.R.(2007): Economics -- Principles, Problems and Policies.

Columbus, OH: McGraw-Hill Companies.

The lack of incentives or competitive pressures may lead monopolistic firms to neglect minimizing unit costs of production, i.e., to tolerate "X-inefficiency" (phrase coined by H. Leibenstein). Included in X- inefficiency are wasteful expenditures such as maintenance of excess capacity, luxurious executive benefits, political lobbying seeking protection and favourable regulations, and litigation" (Khemani and Shapiro, 1993).
In all, monopoly is the economic state in which a single company produces a specified product or type of products, places it on the market at discretionary prices and faces no competition. The monopoly influences the management as it reduces its interest towards product development, satisfaction of customers' needs, the personnel and the resource allocation.

eferences

Falkner, ., 1997, Biography of Smith, Liberal Democrat History Group, http://www.liberalhistory.org.uk/item_single.php?item_id=37&item=biographyetrieved on February 13, 2008

Henderson, D.., 1999-2002, Biography of Adam Smith (1723-90), the Library of Economics and Liberty, http://www.econlib.org/library/Enc/bios/Smith.html. etrieved on February 13, 2008

Karier, T.M., 1993, Beyond Competition: The Economics…...

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References

Falkner, R., 1997, Biography of Smith, Liberal Democrat History Group,   on February 13, 2008http://www.liberalhistory.org.uk/item_single.php?item_id=37&item=biographyRetrieved 

Henderson, D.R., 1999-2002, Biography of Adam Smith (1723-90), the Library of Economics and Liberty,   Retrieved on February 13, 2008http://www.econlib.org/library/Enc/bios/Smith.html .

Karier, T.M., 1993, Beyond Competition: The Economics of Mergers and Monopoly Power, Sharpe M.e. Inc., ISBN: 9781563241277

Moffatt, M., 2008, What You Need to Know About Monopolies and Monopoly Power,   About Economics, Retrieved on February 13, 2008http://economics.about.com/cs/microeconomics/a/monopoly.htm .

A few years ago there were congressional hearings about the accusation against the larger airlines actively working to shut out any smaller newcomer to certain hubs around the world.

hile the ability and willingness of incumbent airlines to respond to competitive entry is central to competition, at some point that response may cross the line of fair competition and become an unfairly exclusionary practice intended to drive the entrant from the market. hen that happens, the result is insufficient competition to discipline the incumbent with resulting higher fares and possibly lower service compared with a situation where the entry had been successful (Clinton, 1998)."

In this situation congress agreed that the larger airlines were purposely driving the smaller ones out of hubs by price gouging and they were ordered to stop.

CONCLUSION

The airline industry is an extremely fickle market. One day prices may be through the roof, while the next day they may…...

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While there were several different congressional testimony transcripts used in the paper at hand this one was important in its own right. The reason this particular one was chosen to use in the paper was the fact that it illustrated the barriers to airline competition. In many instances the discussion about airline competition and airline monopolies centers on some subtle differences that are often quite arguable. The decision about whether an airline is conducting itself as a monopoly or a competitor can be quite subjective, however, this transcript of congressional testimony provides a blueprint to understanding the difference as it outlines the boundaries of airline competition and the problems and limitations being placed in their pathways.

____(1998) STATE of AIRLINE INDUSTRY COMPETITION:ELLIOTT M. SEIDEN. Congressional Testimony

In keeping with the other congressional testimony transcript in which airline competition barriers are discussed, this particular article was chosen because it takes the topic a step further by providing the discussion of the state of airline industry competition. While it was closely related to the barriers to airline competition it uses the same ideas but provides an overview of how they seem to be working out and this was an important aspect of the monopoly vs. competition discussion that needed to be included in this paper.

Therefore, the change seen within the market structure Microsoft devotion high quality alive and strong.
Still, there has been a decline of transactional costs in light of a broken up Microsoft. Before the change of business pattern, Microsoft held the monopoly and therefore capitalized on profit margins. Here the research shows that "Microsoft enjoys so much power in the market for Intel compatible PC operating systems that if it wished to exercise his powers solely in terms of price, it could charge a price for Windows substantially above that which could be charged in a competitive market" (Wilcox 1999). However, this trend is not last significantly after Microsoft was supposed to break up due to its violation of antitrust laws. Yet Microsoft never was forced to fully break up, although it significantly had to reduce practices that were associated with its monopolistic position before the judgment. Moreover, Microsoft's stock fell…...

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References

Bott, Ed. (2011). As Microsoft's monopoly crumbles, its mobile future is crucial. ZD Net. Web.  http://www.zdnet.com/blog/bott/as-microsofts-monopoly-crumbles-its-mobile-future-is-crucial/3454 

Fisher, George. (2000). Why is Microsoft a monopoly? Zaimoni. Web.  http://www.zaimoni.com/George/MicrosoftMonopoly.htm 

Kleinbard, David & Richtmyer, Richard. (2000). Judge orders Microsoft split. CNN Money. Web.  http://money.cnn.com/2000/06/07/technology/microsoft_ruling/ 

Wilcox, Joe. (1999). Judge calls Microsoft a 'monopoly.' CNet. Web.  http://news.cnet.com/2100-1040-232565.html

Monopoly Market
Characteristics of Perfectly Competitive Industry

A perfectly competitive market is characterized as the market in which the firms as well as the consumers are the price takers. A price taking producer implies to the producer whose actions and decisions are not affected by the market forces but are only affected by the choice of the consumers. Similarly a price taking consumer refers to the consumers whose preferences are not homogenous and they have multiple choices. In short a perfectly competitive industry is a set of price taking producers. Other characteristics of the perfectly competitive industry includes

The perfectly competitive industry comprises of large numbers of buyers and producers, and an existence of large number of small firms.

The homogeneity of the product

The firms produce products that result to be the perfect substitutes of products produces by other firms

The producers and the firms of small and large sizes exercise a complete freedom of…...

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References

Nguyen, V., Van Ness, B.F., & Van Ness, R.R. (2007). Inter-market Competition for Exchange Traded Funds. Journal of Economics and Finance, 31(2), 251+.

Yuan, J., Yuan, C., Deng, X., & Yuan, C. (2008). The Effects of Manager Compensation and Market Competition on Financial Fraud in Public Companies: an Empirical Study in China. International Journal of Management, 25(2), 322+.

To this end the argument that monopolies are bad to consumers carries a lot of truth and fact with it and will only be fair to look at such an argument with due considerations.
eferences

Baker, M.J. (1985). Marketing strategy and management. Macmillan: New York.

Belk, .W. (1975). "Structural variables and consumer behavior." Journal of Consumer

esearch 2: 157-164.

Besanko, D. et al. (1996). Economics of strategy. John Wiley and Sons: New York.

Day, G. et al. (1979). "Consumer-oriented approaches to identifying product-markets." Journal

of Marketing 43:8-19.

Dick, a.S. & Basu, K. (1994). "Customer loyalty: Toward an integrated conceptual framework."

Journal of the Academy of Marketing Science 22 (2): 99-113.

Fraser, C. & Bradford, J. (1983). "Competitive market structure analysis: Principal partitioning of revealed substitutability." Journal of Consumer esearch 10: 15-30.

Gabszewicz, J. et al. (2000). "Price competition with complementary goods." Economics Letters, forthcoming.

Kirzner, I. (1973). Competition and entrepreneurship. University of Chicago Press: Chicago.

Lancaster, K. (1971). Consumer demand, a new…...

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References

Baker, M.J. (1985). Marketing strategy and management. Macmillan: New York.

Belk, R.W. (1975). "Structural variables and consumer behavior." Journal of Consumer

Research 2: 157-164.

Besanko, D. et al. (1996). Economics of strategy. John Wiley and Sons: New York.

One immediate ramification could be that the government intervenes in the market to limit Microsoft's monopolistic power. This has occurred frequently and Microsoft is constantly engaged in court proceedings to verify that it is not abusing its market position.
Another limiting factor would be that if Microsoft charged too much for its products then this would open the door for another company to enter the market or gain market share. For example, if Microsoft's OS's became too expensive then this would open a greater door for smaller competitors such as Linux. For most consumers, Microsoft's price does not exceed their switching costs for moving to a different platform. However, if Microsoft increases its prices substantially then this situation could be different.

The situation that Microsoft is in regarding its market structure is common for companies that are monopolistic. These companies can often charge a significant price premium for their goods and…...

These two variables are sufficiently large as to prevent any form of price equalization.
Stiglitz (1977) noted that the conventional theory of monopoly has in a way been restrictive in an unnecessary manner in regard to two main aspects. The first aspect is that the monopolists will generally tend to charge their clients amounts that are proportional to the quantity that they consume (This is referred to by Stiglitz (1977) as the liner price schedule).Such a policy is noted by Stiglitz (1977) to never lead to profit maximization. The non-liner price schedules are noted to be desirable when feasible. Monopolists are however noted to introduce various forms of inefficiencies due to factors such as secondary resale markets or sue to the fact that individuals differ. These are noted as the discriminating aspects of monopolists in the insurance sector. The second aspects of the conventional theory of monopoly in regard to…...

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References

Abraham, M (2008)Importance of a Theoretical Framework for Research. ACS Symposium Series, Vol. 976. DOI: 10.1021/bk-2008-0976.ch005

Stiglitz, J.E. (1977), A "Monopoly, Non-Linear Pricing and Imperfect Information: The Insurance Market, A" Review of Economic Studies, 44, 407-430.

MONOPOLY
Microeconomics: Monopoly

The structure of the markets in which companies operate may vary. The implications of these variations are vital for an understanding of the environment or setting in which a business operates. A monopoly is a market structure where production is under the control of a single supplier. Since the monopolist is the sole source of supply in a market, the demand curve is also the industry demand curve. This implies that the monopolist faces a downward sloping demand implying that if the monopolist wants to sell more, it must reduce the price. In essence, a monopoly is signified by the lack of competition, which usually results in high prices and inferior product quality (Mankiw, 2011).

There are four distinctive causes of monopoly power. These include legal barriers, product differentiation barriers, economies of scale barriers, and transport cost and tariff barriers. Monopoly is the extreme instance in capitalism. In numerous perspectives,…...

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References

Mankiw, N. (2011). Principles of Microeconomics. Ohio: South Western Cengage Learning.

Marshall, A. (2013). Principles of Economics. New York: Palgrave Macmillan.

The Economist. (2016). Too much of a good thing. Profits are too high. America needs a giant dose of competition. Retrieved 17 April 2016 from:  http://www.economist.com/news/briefing/21695385-profits-are-too-high-america-needs-giant-dose-competition-too-much-good-thing

The deal was immediately criticized as anti-competitive by William Kennard, the chairman of the Federal Communications Commission, and by the Communications Workers of America, which represents some workers at both of the merged companies. But neither government regulators nor union bureaucrats will have the slightest impact on the latest merger. They have neither the power nor the desire to oppose the plans of the giant telecommunications monopolies. More substantial opposition to the merger exists among the overseas rivals of the huge American firms. Deutsche Telekom and France Telecom, the semi-privatized telecommunications companies of Germany and France, each owned 10% shares of Sprint, and Deutsche Telekom at one point sought to enter the bidding to acquire the entire company. Now both European firms will sell their holdings because MCI WorldCom is in competition with them in the European market. It is the second time that WorldCom chief Ebbers has spiked an…...

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References

Abbott, A., and Brady, G. (1997) Dezoning Spectrum: Opportunities For Rent Seeking. Journal of Private Enterprise, Fall 1997, 13 (1).

Adams, W.J., and Yellen, J.L., (1976) Commodity Bundling and the Burden of Monopoly. Quarterly Journal of Economics 90 (3): 475-498.

APUC Annual Report (1997)  Http://Www.State.Ak.Us/Apuc/Annualreports/97annl_Rpt/13.Htm  Accessed January, 2002.

Armentano, D.T. (1990) Antitrust and Monopoly: Anatomy Of A Public Policy Failure. New York: Holmes & Meier.

Natural Monopoly
Generally, a monopoly is taken to be a situation whereby a given entity controls or owns the whole market or a significant portion of the same for a specified good or service. Essentially, there are several types of monopolies. In this text, I concern myself with natural monopolies.

A natural monopoly in the opinion of Baumol and Blinder (2007) "is an industry in which advantages of large-scale production make it possible for a single firm to produce the entire output of the market at a lower average cost than a number of firms, each producing a smaller quantity." Basically, what brings about a natural monopoly are the significant start-up as well as fixed costs associated with running a given type of business in a specific market. A good example of a natural monopoly in this case is a utility company operating in the utilities industry. For instance, when it comes…...

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References

Baumol, W.J. & Blinder, A.S. (2007). Microeconomics: Principles and Policy (10 ed.). Mason, OH: Cengage Learning.

King, S., Gans, J., Stonecash, R. & Mankiw, G. (2011). Principles of Economics (5th ed.). South Melbourne, Victoria Australia: Cengage Learning.

Mankiw, N.G (1998). Microeconomics. Orlando, FL: Elsevier.

McEachern, W.A. (2011). Economics: A Contemporary Introduction (9th ed.). Mason, OH: Cengage Learning.

In many ways, Microsoft's point that it was a natural monopoly because of its browser and operating system being the most efficient and cost-effective solution for the market is well taken. Because of the demand for their system, there was a huge economy of scale, making PCs far less expensive. In addition, many monopolies are deadweight loss to society by taking more than giving -- Microsoft's investment and research/development continue to benefit society, and have, in fact, lowered the demand curve so that more people can afford personal computers. This has advanced the market by allowing the platform to become smaller and more efficient in the use of Smartphones and Tablets (Tutor2U, 2012; McKenzie & Shughart, 1998).

Monopolies are not always bad for society, it depends on the product. For instance, if the cost of production drops as the amount of production increases there is a benefit to the economy of…...

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REFERENCES

Department of Justice. (2012). United States v. Microsoft Corporation. USDJ Antitrust Division. Retrieved from: http://www.justice.gov/atr/cases/ms_index.htm

Foldvary, F. (1999). Natural Monopolies. The Progress Report. Retrieved from:  http://www.progress.org/fold74.htm 

McKenzie, R. And Shughart, W. (1998). Is Microsoft a Monopolist? The Independent Institute. Retrieved from:  http://www.independent.org/publications/tir/article.asp?a=322 

Tutor2U. (2012). Monopoly and Economic Efficiency. Retrieved from:   / economics/revision-notes/a2-micro-monopoly-economic-efficiency.htmlhttp://tutor2u.net 

MSFT Monopoly
The Microsoft antitrust case was based around three premises -- that Microsoft monopolized the market for operating systems, that it monopolized the market for browsers and that it bundled its browser and operating system in order to use its market power in operating systems to control the market for browsers. The company was also accused of having illegal agreements with channel partners to keep Netscape's browser out of the market (Economides, 2001).

I believe that Microsoft was trying to gain monopoly power in the industry. However, under the Sherman Act, firms are only forbidden from gaining monopoly power by "improper means." In the case of operating systems, Microsoft was able to succeed on the strength of its product. The browser issue is more complex, and it appears that the practice of bundling Internet Explorer discouraged consumers from buying Netscape Navigator. Although the wording of the Sherman Act is vague, this…...

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Works Cited:

Competition and Monopoly: Single firm conduct under Section 2 of the Sherman Act. United States Department of Justice. Retrieved March 17, 2012 from http://www.justice.gov/atr/public/reports/236681.htm

Economides, N. (2001). The Microsoft antitrust case. Stern School of Business. Retrieved March 17, 2012 from  http://www.stern.nyu.edu/networks/Microsoft_Antitrust.final.pdf 

Epple, K. & Schafer, R. (1999). The transition from monopoly to competition: The case of housing insurance in Baden-Wurttemberg. European Economics Review. Vol. 40 (3-5), 1123-1131.

Going to jail takes you out of the economic system. In the real world, this is usually to one's financial detriment, but not necessarily so in the game.
Comparing the game and real world versions of the monopoly concept, they are similar. In the real world, a monopoly can occur when an owner has exclusive rights over a resource. The color blocks are not considered monopolized until one person owns all of them. Before that point, the properties are considered to be subject to competition. In the game, competition is simplified significantly. Prices are simply stated -- players have no ability to control prices nor do they have the ability to attract demand. Demand is simply apportioned by the dice.

Nevertheless, once a customer has a monopoly, they can begin to extract premium rents. This is possible in the game only by virtue of the fact that some form of demand…...

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Works Cited:

Powell, S. (2009). How to play Monopoly game: Money, pieces and cards. How to do Things.com. Retrieved May 9, 2010 from  http://www.howtodothings.com/hobbies/a4305-how-to-play-monopoly.html 

Investopedia. (2010). Economics basics: Monopolies, oligopolies, and perfect competition. Investopedia. Retrieved May 9, 2010 from  http://www.investopedia.com/university/economics/economics6.asp

Outline for an Essay on the Boston Tea Party

I. Introduction
A. Hook: Begin with a captivating fact or anecdote about the Boston Tea Party.
B. Background: Provide a brief context about the American Revolution and the tensions between the colonies and Great Britain.
C. Thesis statement: State the main argument of the essay, e.g., "The Boston Tea Party was a pivotal event in the American Revolution, igniting widespread protests and ultimately leading to the Declaration of Independence."

II. Causes of the Boston Tea Party
A. The Tea Act and its impact: Explain the provisions of the Tea Act and how it....

Chapter 1: Ancient Civilizations

The Rise and Fall of the Sumerian City-States
The Indus Valley Civilization: Unraveling the Enigma
The Ancient Egyptian Civilization: Pyramids, Pharaonic Power, and Daily Life
The Minoan and Mycenaean Civilizations: Maritime Masters of the Aegean
The Zhou Dynasty and the Birth of Chinese Civilization

Chapter 2: Classical Civilizations

The Athenian Golden Age: Democracy, Philosophy, and the Arts
The Roman Empire: Conquests, Governance, and the Pax Romana
The Mauryan Empire: From Chandragupta to Ashoka's Legacy
The Hellenistic World: A Syncretic Blend of Greek and Persian Cultures
The Han Dynasty: China's Ascendancy and Technological Innovations

Chapter 3: Medieval Civilizations

The....

1. Education and awareness: Individuals can challenge traditional forms of authority by educating themselves and others about alternative perspectives and ways of thinking. This can include learning about different social and political theories, historical movements, and alternative forms of governance.

2. Networking and organizing: By connecting with like-minded individuals and joining grassroots movements, individuals can work together to challenge traditional authority structures and create new systems that are more inclusive and democratic.

3. Civil disobedience and protest: Engaging in nonviolent resistance, protests, and civil disobedience can challenge traditional forms of authority and bring attention to social injustices. This can include participating in....

The Printing Press and the Dawn of Modernity

Amidst the complexities of history's tapestry, certain events emerge as pivotal catalysts, indelibly shaping the course of human civilization. Among these, the invention of the printing press by Johannes Gutenberg in the mid-15th century stands alone as an epoch-defining innovation. Its profound impact on modernity cannot be overstated, for it not only revolutionized the dissemination of knowledge but also sowed the seeds of countless other societal transformations.

1. The Explosion of Knowledge and Ideas:

Prior to Gutenberg's ingenuity, knowledge was largely confined to the privileged few who possessed access to handwritten manuscripts. The printing press....