Oligopoly, Monopoly, And Costs - 1861 Words

The New York Post’s business article, Comcast-Time Warner Cable Critics Fired up, written by Claire Atkinson and Josh Kosman, discusses the Comcast and Time Warner Merger. Comcast has a deal with Time Warner that Comcast will pay $48.5 billion for the company. This deal is currently being reviewed by FCC. There is a possible violation of antitrust laws, as this deal may cause Comcast to be a monopoly of the cable industry. Many companies, like Amazon, Netflix, Dish Network, and Discovery Communications, are leading the attack against the merger. Critics of the deal are claiming that Comcast is in violation of Section 7 of the Clayton Act and the merger will cause harm to competition and consumers (Atkinson). The purpose of this paper is to explain oligopoly, monopoly, and costs because they helped me under stand Atkinson and Kosman’s article. The first concept I am going to discuss is an oligopoly. There are several characteristics that make up an oligopoly. One characteristic is that there are many firms in the industry but only a few firms that make up the majority of the market share. In the United States soda market, three firms (Coca-Cola, Pepsi, and Dr. Pepper Snapple Group) make up almost ninety percent of the market (Schiller, 246). Another characteristic is that in an oligopoly, the oligopolists have substantial influence over price (though one oligopolist is usually the price leader). This market power is determined by the number of producers in the industry, theShow MoreRelatedMaximizing Profits in Market Structures Essays1238 Words   |  5 Pagesgenerate revenue greater than the total overall costs at the same time If a supplier is aware of the market supply curve, and has determined at what quantity marginal costs are equal to marginal revenues, a company can determine how much of a particular good or service should be supplied to the current market to earn maximum profit. If the demand for a good or service rises or falls, the supply curve for the supplier must be adjusted and the marginal costs and marginal revenues must be reevaluatedRead MoreDifferent Types Of Market Structures1413 Words   |  6 Pagesthe price. On the other extreme end is Pure monopoly. A monopoly is characterized by an absence of competition, which will often allow one seller to control the market. A Pure monopoly is essentially the same thing, but also includes near impossible entry and no substitute goods. Two more common market structures are monopolistic competition and oligopoly. Monopolistic competition has a large number of sellers producing different products, while an oligopoly has only a few number of sell ers producingRead MoreMarket Structure and Analysis 996 Words   |  4 PagesThere are a few different market structures, competitive market, monopolies, and oligopolies. According to Mankiw (2007) competitive market, also known as monopolistic competition or â€Å"perfectly competitive market† is defined as â€Å"a market with many buyers and sellers trading identical products so that each buyer and seller is a price taker† (Pg. 290). In this market structure there are two characteristics: there are many buyers and many sellers in the market and the goods offered by the various sellersRead MoreAntitrust Investigation On The Anti Monopoly Law868 Words   |  4 PagesIntroduction†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦... page 2 Investigation and Costs†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ page 3 How Society was Affected †¦Ã¢â‚¬ ¦.†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ page 3 Conclusion†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦......... page 4 References†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.......... page 5 Trust Issues Abstract: The article reports on the anti-trust investigations performed by the Chinese authorities to the business enterprises in acquiescence with the Anti-Monopoly Law in 2014. Corporations that were investigated byRead MoreWhy Most of the Industries Today are Oligopolies Essay622 Words   |  3 PagesWhy do you think most of the industries today are oligopolies? Q. Why do you think most of the industries today are oligopolies? Oligopoly is a market structure in which there are a few large firms with a concentrated market share, an example of an oligopoly today would be Nike, Reebok and Adidas for shoes. Most industries today are oligopolies, the possible reasons for this would be that oligopolies in contrast to monopolistic competition would be able to earn abnormal profits in theRead MoreA Note On Trust Issues933 Words   |  4 PagesAnti-Monopoly Law in 2014. Companies which were investigated include automobile dealer Chrysler Group China Sales Ltd., telecommunication firm Qualcomm Inc., and technology company Microsoft Corp. Also mentioned is information on the purpose of the law enforcement, fines for violations, and the need for foreign firms to understand the country s anti-trust laws. Introduction Antitrust is a term used when a person, society, or firm opposes or intends to regulate business monopolies, especiallyRead MoreMonopoly Between Monopoly And Oligopoly1561 Words   |  7 PagesMonopoly isn’t just a board game where players move around the board buying, trading and developing properties, collecting rent, with the goal to drive their opponents into bankruptcy. However, the game Monopoly was designed to demonstrate an economy that rewards wealth creation and the domination of a market by a single entity. Monopoly and Oligopoly are economic conditions where monopoly is the dominance of one seller in the market and an oligopoly is a number of large firms that dominate in theRead MoreMonopoly Is A Market Structure1285 Words   |  6 PagesMonopoly is a market structure where there is a single seller of a product that has no similar competitors. In a monopoly â€Å"the cost of single firm dominance have long been recognized. Some cost may include, but are not lim ited to, allocated inefficiency† (Gal, 2003, pg.58). In a monopoly the market is a structure in which there is only one producer and seller for a product. In other words, the single business is the industry. The entry into such a market is restricted due to high costs or other holdsRead MoreThe Market Structures Of A Market Structure962 Words   |  4 Pagessome unique traits that no other theory can have alike. Therefore, a comparison and contrast is necessary to distinguish each of these theories from one another. These market structures of the economy are perfect competition, monopoly, monopolistic competition, and oligopoly. These market structures will reveal the difference and similarities that each one has. Firstly, the perfection competition is a market structure that has four assumptions that define what it is to be in this market. The fourRead MoreThe Types Of Market Structures1640 Words   |  7 Pagestypes of competition across various market structures. The types of competition are perfect competition, monopolistic competition, oligopoly, and monopoly. Each types of market structures are a direct reflection of the current economic market state. When a company assesses market structures, the company must conduct proper research on the customers, competition, and costs. Understanding the current nature of the economy is instrumental in the success of the company in different market structures.