Test

Based on our readings, one disadvantage to a normal monopolist is that there is no unique relationship between price and quantity supplied. Also the monopolist equates marginal revenue and marginal cost to determine output, but for the monopolist marginal revenue is less than price. As for price discrimination, the monopolist can increase its profit by charging different prices to different buyers. This is where they sell a product more than one price when the price difference is not justified by cost differences. And without a high cost to themselves, they can persuade buyers.

Some examples of monopoly, competitive, monopolistically competitive and oligopoly markets are as follows:

Monopoly: My electric company, PNM. They are the only electricity company in the Albuquerque metropolitan area. They are also the sole providers in gas. If I was to look through the phone book, there is no other listing for other companies who provide electricity and gas.

Competitive: The only example I can see is with the cell phone companies. I do not know how many cell phone companies that the Albuquerque area utilizes. From the commercials I usually see are, Verizon wireless, Cricket, AT&T, Alltel, T-Mobile, Sprint, Qwest, CellularONE, and I believe there are two more, but I am not think of the names. And I am pretty confident; it is easy for any firm to enter this industry.

Monopolistic: One example I could think of is the companies that once provided just one sole service and now extended their services. For instance, Comcast, first started out as a cable company providing only cable services. However, over the years, they extended their services to include, phone and internet. In addition, Qwest first started out as a telephone company and now is providing not only phone services, but the internet, television, and cellular phone services. And on TV, again, you will see these companies going back and forth with what kind of packages they offered that...