Eco100 Week 4&5 Dq's

Week 4 Discussions

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D1 "Monopoly" Please respond to the following:

Identify a company in your local area that you would classify as a monopoly. I would classify Dominion Power as the monopoly in my area. As stated in the text a monopoly is a single firm that sells a product that does not have any substitutes (O'Sullivan, Sheffrin, Perez, 2014).

Explain why you classified the company as a monopoly, and state how the company relates to at least two (2) characteristics of that particular market.

Dominion Power is a monopoly because it is the only company that anyone in Northern Virginia can purchase electricity from.

1- Dominion Power relates to the monopolistic market of selling electricity because it is a unique product.

2- Dominion Power relates to the monopolistic market of selling electricity because there is no other company that offers the service.

Discuss one advantage and one disadvantage of having the government regulate monopolies. Provide an example in your response.

Advantage- The government regulation prevents monopolies from raising prices on products and keeping competition fair.

Disadvantage- The government regulation requires companies to share information which causes massive competition. Such a competitive market could prevent growth cause companies to not provide their best services and products generalize pricing, which.

D2 "Market Entry and Monopolistic Competition" Please respond to the following:

From the e-Activity article, explain your position on whether or not Apple is stifling competition and monopolizing the tablet market.

I do not think the Apple I stifling the competition, if anything I think that Apple is setting itself up to not be expandable in the future. Apple has been known to come out with products that are only compatible with Apple products. This monopolistic approach in such a broad market as electronics can prove to be detrimental to the company if not handles carefully.

Examine...