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

Gains from international trade, Gains From International Trade The gai...

Gains From International Trade The gains from International trade are to make the participating countries better of than they would have otherwise been.   This will be the res

the total cost of giving this insured service, The services of a certified...

The services of a certified psychologist cost $110 per hour, and an extended health plan covers 50 percent of that cost. Under the plan, the clients covered used 625 hours of this

Explain how the firm can produce the same output, A firm is employing 100 h...

A firm is employing 100 hours of labor and 50 tons of cement to produce 500 blocks. Labor costs Rs 4 per hour and cement costs Rs 12 per ton. For the quantities employed MPL = 3 an

Question, Calculate point elasticity of demand for demand function Q=10-2p ...

Calculate point elasticity of demand for demand function Q=10-2p for decrease in price from Rs 3 to Rs 2

Governmental functions, a)  The most well-organized combination of resource...

a)  The most well-organized combination of resources which can be used to make a given level of output is that which:   b)  The enactment of a guaranteed yearly income for al

Objectives of credit control , OBJECTIVES OF CREDIT CONTROL The old ob...

OBJECTIVES OF CREDIT CONTROL The old objective of controlling credit creation by the commercial banks in the country was dictated by considerations of maintaining stability of

Non-accelerating inflation rate of unemployment, NON-ACCELERATING INFLATION...

NON-ACCELERATING INFLATION RATE OF UNEMPLOYMENT   During 1970s economists encountered a puzzle  in  the sense that  inflation and unemployment  data  did not  fit  into the Phi

Measuring point elasticity on a linear demand curve, Measuring Point Elasti...

Measuring Point Elasticity on a Linear Demand Curve To explain the measurement of point elasticity of a linear demand curve, let's suppose that a linear demand curve is given b

Foreign exchange markets, Foreign Exchange Markets It is the place whe...

Foreign Exchange Markets It is the place where buyers and sellers meet to negotiate the exchange of different currencies e.g. forex bureaus. Exchange Rates These are

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