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Real life examples of monopoly?

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    • Thread Starter

    Hi all,

    While I am doing revision for my econs, I cannot really think of real life examples for the 3 market structure Perfect Competitions, Monopoly, Monopolistic com. This is what I can think of, do correct me if I am on the wrong track...

    Perfect competitions
    Egg sellers in the wet market selling eggs-Homogenenous product(all eggs are the same)
    -Many buyers, many sellers
    -Free entry and exit
    -Infomation and mobility(sames infos and transportation/delivery)

    Microsoft-Homogenenous product(Window Vista Operating System)
    -One Seller
    -High Barriers to entry
    -Infomation and mobility
    (For this not very sure as...there is also other compettiors of OS like Unix, SUN)

    Sony Digital-Hetogenous product(camera with sony designs, different from the rest of the retailer)
    -Many sellers, many buyers
    -Free Entry and Exit
    -Infomation and mobility(same)

    any help will be appreciated, thanks

    Microsoft is not an example of monopoly as you have other OS ,as you mentioned like Linux, Unix. And I don't think there are high barriers to entry also. However I can't think of any other present day example of monopoly. But in the past there was De Beers which had a monopoly in the diamond market till about a decade back when a Israeli competitor(can't remember the name) entered into the scene.
    Your example of monopolistic competition is correct i think. Don't know about your perfect competition example, it could be right. PC usually exists in agricultural products whose prices are fixed by the government.
    • Thread Starter

    Hey alds87, thank you for taking the time to reply to my message. Hmm..kk..at least i am more confident in quotng the examples now.


    for monopoly, could you mention (beneficial) drugs?

    Ie, drugs to cure certain types of diseases.

    There'd be a monopoly on it, since companies like GlaxoSmithKline would search for a cure on some disease, then patent it.
    • Thread Starter

    Hi Narev, nice to hear frm you. I think you haf a point there. Will take note of that. Thanks

    yes glaxiokilinesmith or whatever it is called is to a certain extent a monopoly, but that is because of government legislation that says you can only make medicine with a license.

    Up until recently, The Post Office.

    amazon. google. can be argued to have such market power that this is in effect monopoly power.

    Any company in "real life" that has > 25% market share is considered a monopoly, so there are lots of examples.

    microsoft had until recently a monopoly on web broswers. but it really depends on your definition of monopoly, some define it as 25% on the market which gives scope for quite a few examples


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