Monopoly and Oligopoly
2. Identify one oligopoly from which you buy a good or service.
3. Identify one monopolistic competitor that you buy a good or service from.
4. Share one effect you think these types of firms have on the quality of goods or services that you purchase. Is the quality affected positively or negatively? Provide a rationale for your answer.
Identify one monopoly from which you buy a good or service.
A monopoly is a state where there are numerous buyers in a market but a single seller (Mussa, 1978). One monopoly from which I purchase a service is Con Edison. Con Edison is an ideal illustration of a monopoly since Con Edison is the sole purveyor of gas, electricity, and water in the United States., therefore, they have only one firm. To supply a nation with the resources we receive from Con Edison, one would need a power plant which is ridiculously costly; this is why ingress to the market is deterred. There exists no assortment in services or goods, for they offer specific services and goods. Thus, because they are the main firm providing us with electricity, gas, and water, they have complete market control.
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