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The natural monopoly is often characteristic of industries that require a large investment to enter the market, worked the high fixed costs as a barrier to entry.
Main article: Elasticity of demand and barriers to entry
The price elasticity of demand for a company (in this case coincides with the price elasticity of market demand (EPD) to be the only company that caters rioja) Buffet establishes the relationship of changes in quantity demanded (QD ) caused by variations in the product price (P). Is the direct source of market power, but this is based on a number of other
The elasticity of market demand: as demand for the company is at least as Ernst elastic as the market demand, the elasticity of market demand limits the scope of the company can achieve monopoly power. Asset Management Thus, for example, the existence of close substitutes may be determined by market demand investment management curve elastica causing the company to lose market power, while the need of the product can become inelastic and increasing the company’s monopoly position.
The relationship between the companies: A fierce rivalry in seeking greater market share prevent monopoly power. Obviously, the monopoly in this factor because it influences the market structure is characterized precisely by the existence of a single producer. However, this source can be interpreted here as the rivalry for a share in FOX news the funds market, based on the theory of markets disputed.
The number of companies in the market: if there are many companies, investments it is unlikely hedge funds that a company can raise
NTSC PAL or switching to PAL SECAM No information
the price significantly. To do so companies try to create barriers to entry. These barriers may include:
Legal: Patents, licenses, copyrights, among other seats. Often give rise to artificial monopolies.
Traditional economies of scale, high fixed costs among others. Often give rise to natural monopolies.
Habits: Develop a commitment from consumers with the company in question, causing overdraft a complete rejection of the rest.
A control element for the production.
Segmenting the market through a market segmentation avoids the consequences of global competition among companies. One example is the use of different coding systems, PAL or NTSC according to the area. Models of the market economy. Companies. Perfect and imperfect competition. Monopolies. Oligopolies. Monopolistic competition
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