What is the monopolistic market?
The monopolistic market is a type of market where at least some features associated with a monopoly situation are present. The market of this type usually shows more than one feature and there is some difference in views of how strong these qualities must be in order to actually be considered monopolistic. The market conditions of this nature prefer one or select several suppliers on this market, because consumers are left relatively few and in general they have to pay anything that suppliers check the market to charge.
The example of the monopoly market would be a situation where the only supplier dominated 70% of the market, while a smaller competitor dominated about 20% of the same market. Among them, it would be easy to determine what price range would be charged for goods or services provided by both entities. Prices could often be set at a level that allows these two businesses generatzes based on sales volumes that other competitors could not hope to do. HorseThe result is that these smaller competitors are unable to increase the market share and it is much more likely that they will eventually fail, which will leave the market completely on these two main players.
The creation of a monopolistic market is often discouraged in many countries. In fact, the World Trade Organization has actually encouraged nations in recent decades to adopt antitrust laws that would help minimize the potential for this type of situation. The basic prerequisite is that the competition is healthy for all involved. Entrepreneurship that is able to operate in industries will be open to the competition, the order of daily order is a much greater chance of prosper, which in turn provides more people jobs and source of income. This in turn helps to increase consumer demand for various good and services and maintain the nation's economy healthy.
On the other hand, the monopolistic market is perceived as unable toA onal competitive situation where the economy can be caused by great damage. With less competition on the market, employees have fewer options in ensuring work with businesses that offer better reward packages and benefits. Employers with a legal monopoly have no motivation to offer competing wages and benefits, because there are no competitors who offer nothing better. The final result of this monopoly market includes employees who are locked in specific remuneration scope, which may or may notice, providing income needed to buy a number of goods and services, which eventually limits the economic ability to grow.