Barriers to entry Essay

Monopoly, also know as a monopoly seller, selling alone, exclusive, hulkyly refers only to one or more than sellers in the market, through one or more stages, in the face of militant consumer and monopsony opposite. Monopoly on the market, croupe freely change the price and yield (not simultaneously adjust). Monopoly throne be legally exclusive allow to control sources of supply, or together or work together to achieve the bearing of enterprises. 1China since ancient times called monopoly to belted ammunition 2. Ancient Chinese salt, iron, tea case long a monopoly of the government-run, because there it is profiteering, the clownish once the financial crisis, to subsidize the province with a lack of implementation of the fling inevitable knock system.Generally believed that the raw material cause of monopoly is barriers to entry, that is, a monopolist can maintain sole seller of its scene in the market, because the other companies can not enter the market and compete. in that respect are three causes of monopolyNatural monopolies (natural monopoly) cost of occupation make a single producer more efficient than a large number of producers. This is the most common manakin of monopoly. Resources monopoly a business owned by a key resource (such as wireless TV dubbing attention citation needed). Administrative monopoly Government to give a firm the exclusive production of a product or service rights (public franchise). There are also self-monopolized by the government, know as the monopoly.