Monopolistic practices, Managerial Economics

Assignment Help:

MONOPOLISTIC PRACTICES

The following practices may be said to characterize monopolies.

Exclusive dealing to supply and collective boycott

Producers agree to supply only to recognized dealers, normally only one dealer in each area, on condition that the dealer does not stock the products of any producer outside the group (or trade association).  Should the dealer break the agreement, all members of the group agree to withhold supplies from the offender.  This practice has proved a very effective restriction on competition for it ensures that any new firms would find it extremely difficult to secure market outlets for their products.

Barriers

The creation of barriers to ensure that there is no competition against them.  E.g price undercutting, individual ensure that actual text printed collective boycott and exclusive holding of patent rights.

Resale Price Maintenance (PRM)

A monopolistic firm may dictate to wholesalers and retailers the price at which its products would be sold.  This is another way of ensuring that other firms are not attracted into the industry, if such firms can sell their products at more competitive prices.


Related Discussions:- Monopolistic practices

Short run equilibrium of a firm under monopoly, The short run equilibrium o...

The short run equilibrium of monopolist is displayed below in figure. Figure: Abnormal Profit under Monopoly AR is the average revenue curve, MR is marginal revenue cu

Explain the point and arc elasticity of demand, Point and arc elasticity of...

Point and arc elasticity of demand The elasticity of demand is conventionally measured either at a finite point or between any two finite points, on demand curve. The elasticit

Estimate the firm operating efficiently, Suppose you are an efficient exper...

Suppose you are an efficient expert hired by a manufacturing firm that uses two inputs, labor (L) and capital (K). The firm produces and sells a given output. You have the followin

Explain the game theory, Q. Explain the Game theory? Game theory:   Ga...

Q. Explain the Game theory? Game theory:   Game theory is a branch of applied mathematics which is used in the social sciences, most particularly in economics, as well as in b

Factors influencing supply - prices of factors of production, Prices of the...

Prices of the factors of production As the prices of those factors of production used intensively by X producers rise, so do the firms' costs. This cause supply to fall as some

Principles, Give some examples for marginal and incremental principle

Give some examples for marginal and incremental principle

Features of planned economy, Features of Planned Economy The command e...

Features of Planned Economy The command economies relies exclusively on the state.  The government will decide what is made, how it is made, how much is made and how distribut

Describe about the theory of profit, Describe about the Theory of profit ...

Describe about the Theory of profit Every industrial and business enterprise aims at maximising profit. Profit is the difference between total economic cost and totalrevenue. P

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd