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Essay

Monopolies Effect on Resource Allocation in Industry

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Issue:

Miscellaneous

 

Written by:

Mary L

 

Date added:

January 26, 2016

 

Level:

 

Grade:

A

 

No of pages / words:

2 / 559

 

Was viewed:

848 times

 

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Essay content:

A lot of the characteristics are also seen in privately owned monopolizing firms. When they become so big, that competition is practically gone, the incentive to make even more profits, and being innovative diminishes. In a competitive industry this is not the case. The fear of losing your job, not being able to compete, your products becoming obsolete etc...
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The fear of losing your job, not being able to compete, your products becoming obsolete etc. are important factors, which stimulate productivity. It is therefor obvious that the competitive industry will try harder to allocate their resources in the most efficient way. To land, the external costs in a competitive industry will often be pollution, seeing that the firm will strive hard to diminish their costs resulting in the firm ignoring 'unnecessary' costs...
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