Think of two examples of pure monopoly in the real world—one of a public good
and one of a private...

Question

Think of two examples of pure monopoly in the real world—one of a public good 
and one of a private good. Then, with reference to both examples, post a 
response to the following:

1. Can both monopolies continue endlessly? Why or why not for each 
example?

2. What factors could cause the monopolies to end?3. Is there a difference 
between the public monopoly and a private monopoly?Please include the questions and responses

David · Accepted Answer

hink about a pure monopoly, monopolistic competition, and oligopoly from the economic and then from a consumer perspective. Then, post a response to the following:
 1. As a consumer, what are the advantages and disadvantages of each of these industry structures?
 2. To an economy, what are the advantages and disadvantages of each of these industry structures? 
3. Do private and social interests coincide under these industry structures? Give examples to support your reasoning. Please write the questions and answers.
Each of these structures differs in the monopoly power enjoyed by the firm. Clearly the maximum power is with the monopolist , while the firm in monopolistic competition has the least power. As a consumer, a monopoly is disadvantageous as it charges the highest price possible from me and gives me no other choice in terms of variety. Consider an upmarket luxury store that offers hand- made jewellery. This firm charges a high price as it is the only store that stocks this jewellery.

Think of two examples of pure monopoly in the real world—one of a public good and one of a private good. Then, with reference to both examples, post a response to the following: 1. Can both monopolies...

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