Question

In: Economics

As a manager, would you prefer your business to be in a monopoly position or a...

As a manager, would you prefer your business to be in a monopoly position or a perfectly competitive market? Why? Support your views with examples.

For your answer support your views/opinions (with at least two scholarly references and mention the reference them ), and a word count of 400 words.

If not follow the instruction above will rate your answer with thumb down.

Solutions

Expert Solution

As a manager, I would prefer my business to be in a monopoly position rather than in the perfect competition market.

This is because of the following reasons:

1) Monopoly firms are generally price takers.

2) Monopoly firm would in the position to charge a higher price from the consumer

3) Monopoly firm would earn supernormal profit in the short-run

4) Monopoly firm does not face any competition as there are restrictions on the entry of new firms in the market

5) There will be assured market for the good sold by the monopoly firm

6) The higher profit that would be earned would be used for research and development and improve the scale of production efficiency

7) There is a greater incentive to develop new technology and knowledge when it is a monopoly firm with patent rights.

8) There would not be duplication of set up plant for manufacturing unit as is seen in case of perfectly competitive firm and hence, those resources saved could be used for the different alternative uses.

9) By restricting output, the monopoly firm help contribute to the environmental cleanliness and protection

10) A monopoly firm has the flexibility to do price discrimination without worrying about losing customers.

The two citations are:

1) Abolghasemi Komleh, Ramin. (2018). A comparison between conditions of perfect competition market and pure monopoly in supply, demand, and equilibrium.

2) Yongmin Chen and Marius Schwartz, 2009. "Product Innovation Incentives: Monopoly vs. Competition,"


Related Solutions

As a manager, would you prefer your business to be in a monopoly position or a...
As a manager, would you prefer your business to be in a monopoly position or a perfectly competitive market? Why? Support your views with examples.
Q3. As a manager, would you prefer your business to be in a monopoly position or...
Q3. As a manager, would you prefer your business to be in a monopoly position or a perfectly competitive market? Why? Support your views with examples.
Would you consider becoming a nonprofit manager or would you prefer to work in the for-profit...
Would you consider becoming a nonprofit manager or would you prefer to work in the for-profit sector? Why or why not? If you choose to work in the nonprofit sector, what are the non-monetary aspects of nonprofit work that drive you toward wanting to work in this field? If you choose the for-profit sector, why would you prefer to work in that field?
You are a manager of a monopoly, and your demand and cost functions are given by...
You are a manager of a monopoly, and your demand and cost functions are given by P =220 -2Q and C(Q) = 2000 + 10 Q2 What Price maximizes your profit
In Your pursuit of a Project Manager position, what field would that be in?. Hopefully one...
In Your pursuit of a Project Manager position, what field would that be in?. Hopefully one in which your writing skills would be appreciated?
4. You are the manager of a monopoly, and your demand and cost functions are given...
4. You are the manager of a monopoly, and your demand and cost functions are given by P = 300 - 3Q and C(Q) = 1,500 + 2Q^2 , respectively. a. What price–quantity combination maximizes your firm’s profits? b. Calculate the maximum profits. c. Is demand elastic, inelastic, or unit elastic at the profit-maximizing price–quantity combination? d. What price–quantity combination maximizes revenue? e. Calculate the maximum revenues. f. Is demand elastic, inelastic, or unit elastic at the revenue-maximizing price–quantity combination?
Which type of corporation (C or S) would you prefer as the business owner? Which would...
Which type of corporation (C or S) would you prefer as the business owner? Which would you prefer as the taxpayer? Recall how the income for each is treated to inform your response.
would manager prefer recognizing asset impairment loss? Why?
would manager prefer recognizing asset impairment loss? Why?
Which way would you prefer your company share their wealth? Why?
Which way would you prefer your company share their wealth? Why?
If you were to hire an operations manager for your chosen business (assume that your business...
If you were to hire an operations manager for your chosen business (assume that your business has scaled in size so that you would need an ops manager), what would their duties be, and what skills and abilities would you have been looking for when you hired them? my business is Coffee Industry
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT