Monopoly Revolution Game

Product Information

New entrants are destined to fail unless they have original ideas or can exploit a new market segment. If the demand curve shifted the marginal revenue curve would shift as well and a new equilibrium and supply "point" would be established. Intellectual property rights, including patents and copyrights, give a monopolist exclusive control of the production and selling of certain goods. The most famous current example is the market dominance of the Microsoft office suite and operating system in personal computers.

Monopolies derive their market power from barriers to entry – circumstances that prevent or greatly impede a potential competitor's ability to compete in a market. There are four basic types of market structures in traditional economic analysis: perfect competition, monopolistic competition, oligopoly and monopoly.Barriers to entry: Barriers to entry are factors and circumstances that prevent entry into market by would-be competitors and limit new companies from operating and expanding within the market. Manipulation: A company wanting to monopolise a market may engage in various types of deliberate action to exclude competitors or eliminate competition. Control of natural resources: A prime source of monopoly power is the control of resources (such as raw materials) that are critical to the production of a final good. Technological superiority: A monopoly may be better able to acquire, integrate and use the best possible technology in producing its goods while entrants either do not have the expertise or are unable to meet the large fixed costs (see above) needed for the most efficient technology. While monopoly and perfect competition mark the extremes of market structures [16] there is some similarity.

Barriers to exit are market conditions that make it difficult or expensive for a company to end its involvement with a market. This is the main way to distinguish a monopolistic competition market from a perfect competition market. The number of companies in the market: If the number of firms in the market increases, the value of firms remaining and entering the market will decrease, leading to a high probability of exit and a reduced likelihood of entry. The government may also reserve the venture for itself, thus forming a government monopoly, for example with a state-owned company. Therefore, the whole market is being served by a single company, and for practical purposes, the company is the same as the industry.

Advertising: Advertising and brand names with a high degree of consumer loyalty may prove a difficult obstacle to overcome.

Holding a dominant position or a monopoly in a market is often not illegal in itself; however, certain categories of behavior can be considered abusive and therefore incur legal sanctions when business is dominant. Elasticity of demand: In a complete monopolistic market, the demand curve for the product is the market demand curve. The boundaries of what constitutes a market and what does not are relevant distinctions to make in economic analysis. A monopoly (from Greek μόνος, mónos, 'single, alone' and πωλεῖν, pōleîn, 'to sell'), as described by Irving Fisher, is a market with the "absence of competition", creating a situation where a specific person or enterprise is the only supplier of a particular thing.First-mover advantage: In some industries such as electronics, the pace of product innovation is so rapid that the existing firms will be working on the next generation of products whilst launching the current ranges. A monopoly can preserve excess profits because barriers to entry prevent competitors from entering the market. With a monopoly, there is great to absolute product differentiation in the sense that there is no available substitute for a monopolized good. In a general equilibrium context, a good is a specific concept including geographical and time-related characteristics. The absence of substitutes makes the demand for that good relatively inelastic, enabling monopolies to extract positive profits.