Competitive Or Monoply Market

Competition or Monopoly : Which is betterMuch debate has existed in proving which is better , a monopoly market or a competitive market . principally , a monopoly has gained a negative connotation because it is mostly denigrating to the consumers while a competitive market has praisedTo better let off the differences between the two types of market , we will use the electrical utility business as an example . Meralco provides electricity for the wide Metro Manila . Meralco can raise their prices as very much as they want and the consumers can do nothing around it as br Meralco has monopolized the industry . If consumers would not buy their electricity from Meralco because they price it too much , they collapse nowhere else to go to get their supply of electricity . Thus , they are compel to buy electricity at outrageous prices since electricity is a basic commodity . On the other hand , if some other electric utility company entered the scene , the situation would be different .

Let us say that Penelco started offering electricity for a much lower price . The consumers now have the option of choosing to get their electricity supplied by Penelco . Meralco would lose its customers so it would be compelled to decrease their prices or increase the quality of their aid . Either way , a competitive market is slackly better for the consumersIn extreme cases , the term vestal monopoly or polished competition (also referred to as perfect competition ) has been coined . A pure monopoly controls the entire supply of a product or dish just like...If you want to get a full essay, secernate it on our website: Ordercustompaper.com

If you want to get a full essay, wisit our page: write my paper