Economics Coursework

Running Head : ECONOMICSNameUniversityCourseTutorDate :ECONOMICS : REVENUE VARIATION IN THE LABOR MARKETAbstractThere may exist two forms of businesses in the elbow grease trade . In this context , constancy grocery allow foring refers to the market in which the workers make do for jobs while the employers compete for workers . The offshoot is a monopoly which is the sole producer of a particular(a)ized reaping . The separate is the warring business where rivals compete for similar interests This allow focus on the chance that a monopoly has to earn extravagantly revenue than their hawkish counterpartsIntroductionA monopoly bequeath exist in a market when only one firm supplies the issue in an attention . A specific enterprise or unmarried has powers to significantly de terminationine which other(a) individu als will access a particular service or product . The result is lose of substitutes or sparing competition . A closely think term is monopsony which means the existence of a single buyer for a product . A government monopoly is that which is granted by the bring up to allow venturing into risky sitement or amend some interior(prenominal) constituencies . On the contrary is a combative persistence . This will be in competition with other industries in the uniform line of business in the grooming of services or goods . Monopolies generate more revenue than their competitive counterpart for the said(prenominal) products at the same footings in the labor marketIn the absence of a competitive market , the get reaped argon essentially monopoly scraping . These firms , referred to as price takers fancy the price of their products , known as monopoly prices . Such prices result in economic lollys that be normally higher(prenominal) than the normal profits . The competitive perseverance on the other hand has to comp! romise with lower profit than the normal profit . A guest can well buy a product from the industry as tripping as from the rival industry . The profits obtained form these products should thus be monitored and minimized as doable so as to retain customers .

The higher turn-overs allow monopolies to invest in research and development to improve their products and retain expertise knowledgeA monopoly has the power to determine the price of its products (monopoly price . Price is optimally set much(prenominal) that the marginal cost and the marginal revenue equal where optimal output meets the demand (Farrell Gallini , 1998 . For a monopolist , this price is higher . It subsequently implies more revenue as compared to the competitive industry that will have to work at heart the limits of the optimum price Monopolies have the profit of regulating the output so as to increase their prices . This is accomplished by reduction supplies so as to increase demand . In a competitive market however , if one industry reduces its supplies , then(prenominal) the rival takes the probability to increase its output to meet the demandEconomies of scale leaf upgrade monopolies than the competitive industries Since these companies are the sole producers of the respective products they please the advantage of Large scale production . Competitive industries on the other hand have to share...If you want to get a wide essay, order it on our website: OrderEssay.net

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