Monopoly, Oligopoly, and Cartel

Monopoly, Oligopoly, and Cartel William J. Ravert Jr. American Intercontinental University Unit 2 Individual Project BUS610 political economy for the Global autobus October 14, 2012 Abstract This research paper entails the differences between monopolies, oligopolies, and cartels. This explains what from each unmatched of them is, and what separates them from each opposite. This discussion also includes the game theory or oligopolies and cartels. The stinting purpose of the OPEC has also been included in this paper. Monopoly A monopoly is a single company that has complete declare everywhere a specific harvest-time or armed service that involves higher(prenominal) prices and the unfitness to respond to the needs of the consumer. This also is explained as thoroughgoing(a) emulation as there are no other competitors allowing the monopoly to stomach chink over the pricing. This practice has been outlawed deep down the linked States by the antitrust laws tha t were put in place. An exemplar of a monopoly would be a general utility company. Although a public utility company could be classified as a monopoly, their marketing plans and prices they charge must admit the favor commensurate reception of the presidency (All Business, 2012).

Oligopoly An oligopoly is a situation in which a low-down pigeonholing of companies arouse the control over the supply of a product or service and therefore are able to control market price. The two types of oligopoly are perfect, where all parties have the very(prenominal) product or service, and imperfect, where the involved co mpanies have the product or service but have! a different identity. Examples of these would be the product of cement for the perfect oligopoly and cigarettes for the imperfect oligopoly (All Business, 2012). Cartel A cartel is a group of companies or even countries that have an arrangement to regulate the production of a product or service and in turn are able to control the pricing. The most notable example of a cartel is the governing body of oil Exporting Countries (OPEC). This group has the ability...If you want to get a effective essay, order it on our website: OrderCustomPaper.com

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