#Edit monopoly board template free
It is bad because: Monopolies are usually bad for an economy because they restrict free trade, which allows the market itself to set prices. Some services if their is more than one company that would be ridiculous because this means that they would both increase the price and people will not benefit from this. They can be the only people that give that product since if a competitor decides to join then the monopoly can lower its prices causing the competitor to have to break down and cant function at such a low cost. No expectations to change to DEWA’s monopoly status Issues in monopoly Only one firm sells the product No ( close ) substitutes Is Monopoly Good or Bad? It is good because : Is that they may be able to raise their price as they want to and no one can say anything. DEWA does not face competition from any entity in its domestic market and this excludes the possibility of the Authority being exposed to any competitive pressure. DEWA was recognized as one of Dubai's best government departments ("Government of Dubai Excellence Gold Award" ) In 1992, the government appointed DEWA as the sole producer and supplier of electricity and water within the Emirate of Dubai. DEWA is one of the more commercially minded power utilities in the region, given its history of good operational and financial performance. DEWA is the state-owned vertically integrated utility of the Emirate of Dubai: Is the state-owned monopoly provider of electricity and water in Dubai. Natural Monopoly and the Firm Single Source Suppliers: Benefits of SSS: Lower transactions costs Pecuniary economies (volume discounts) much more likely when the supplier experiences real economies. Natural monopolies are often regulated: they cannot charge a higher price without government approval. Thus, average total cost is always declining and the minimum efficient scale is much larger than the size of the market. Natural monopolies: Goods and services whose delivery requires the construction of a physical network (wires, pipes, etc.) In such industrial (local phone service, water sewage removal, electricity, gas) the physical networks display decreasing marginal cost over essentially all quantities. Economic and/or legal restrictions, strategies or situation that make entry more difficult for new competitors than for the existing monopoly firm. Patents, copyrights, licenses, franchises: government protection of a firm’s to produce a unique product. Perfect competition, monopolistic competition, oligopolistic, monopoly ( numbers of firms, price ) Sources of monopoly entry barriers: Natural monopoly: the most efficient scale of production is so large, relative to market demand, a single firm dominates the market. When you have a monopoly you can ask any price you like. Definition of monopoly: A market in which there are many buyers but only one seller. Issues in monopoly Is monopoly good or bad ? References. Natural monopoly and the firm single source suppliers. Transcript: Hessa Azza Asma Khulood contents The definition of monopoly.
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