Monopoly Research Paper Example | Topics and Well Written Essays - 750 words

Monopoly - Research hotsprint ExampleThis paper will explore the various barriers to entry in a monopolistic grocery structure. Discussion The primary method of discouraging telephone circuites to operate in a monopolistic market is to draw deliberate entry barriers in the form of trade barriers. Market regulators may decide to discourage new business entry by placing restrictions on licenses, tariffs, currency movement and by providing existing businesses with subsidies. Typically, trade barriers atomic do 18 taken into consideration in terms of international trade only (Hans, Dahringer, & Leihs, 1999). Governments are known to constrain entry restrictions through licensing restrictions whereby new businesses are not issued licenses to operate inside the market. For example, the defense industry in the United States is highly defended by the government, as foreign operatives are not issued licenses to operate in the same market. In addition to these licensing restrictions, governments may choose to restrict import and export licenses in methodicalness to keep a monopolistic market intact. Legal entry barriers are analogous to trade barriers. Governments employment various forms of laws to ensure that new businesses are unable to enter the target market. ... or example, a number of Islamic countries discourage the production of alcoholic products in their borders by complicating the launch of new alcohol manufacturing businesses (Blinder, Baumol, & Gale, 2001). In addition to legal and trade barriers, another entry barrier employs technological and copyright methods. The presence of copyrights and trademarks related to to certain products means that new businesses cannot enter business segments protected in this fashion. Typically, copyrights and trademarks are employed to protect businesses that are unique in terms of content such as music, books, films etc. However, copyrights and trademarks are as well employed to protect other businesses where new entrants could go forth such as pharmaceuticals. If a pharmaceutical attach to owns a certain patent for medicine, then only that business can produce the subject medicine. early(a) businesses may also acquire the formula but cannot produce due to copyright and patent restrictions. Monopolies emerge in markets where resources are scarce and controlled by one or a select few businesses. Perhaps, the to the highest degree telling example of such monopolies is the production of oil and shooter in the Central Asian region. vegetable oil and gas resources are scarce around the world and businesses are trying to shift to newer sources of oil and gas present in Central Asia. However, these resources are controlled by the local governments and existing businesses that do not lease new businesses to enter the market. The control of these scarce resources by a few select businesses means that the emerging market structure is a monopoly (Hirschey, 2000). In a similar manner, large sunk costs discourage new businesses from entering the market. Sunk costs represent investments that cannot be recovered in case the business has to