Are monopolies and oligopolies always bad for society?
Please provide real world examples of where this may be the case.
It is my pleasure to be assisting you once again. Today, you have asked whether or not monopolies and oligopolies are always bad for society.
In a nutshell, you can probably determine that these economic entities are not always bad for society, or the question would not be asked. One might wonder, then, that if most capitalist societies ban monopolies and oligopolies from existing, how they could ever be good for society in the first place. The answer is that such companies are actually allowed to exist under certain conditions. Let me give you a primary example of ...
Discussion about some examples that demonstrate situations under which monopolies and oligopolies are actually good for society.
Oligopoly, Monopoly, Competitive Markets and Firm Costs
Please explain these questions:
Is it false that the defining characteristic of oligopoly is that each firm is mutually interdependent?
Is it true that a price discriminating monopolist charges the same price to everyone? (Be sure to point out that a price discriminating monopolist must be the only seller in the market.).
Is it false that most consumers would prefer markets that are purely competitive?
Is it true that a firm should shut down in the short run if price is less than average fixed costs?