Question

Read and analyze the response below. do you agree? why or why not? What do you think? explain. (5 Sentences Minimum)

Monopoly refers to an industry dominated by one firm corporation or industry. Here in this type of market conditions there is only one big group or company operating in the whole market for a particular types of products or services. The same was with the Ecke family they were acting monopolistic and were the only seller of modified poinsettias flower until their secrets have been revealed by the professor. Due to this it will directly give all the competitors of the flower industry a kick start and a sensation of grabbing the glorious opportunity to enter the market, because all the barriers created get destroyed now after the publication of news. Barriers to enter the market get automatically removed. From a single seller it will get converted to a multi seller market. Yes there will be a decrease in price of the flower as now there would be multiple sellers in the market because of its awareness among all the people.

Answer 1

The information in the paragraph is correct. This is because one of the reasons that monopoly exists in the market is because they have access to some particular technology which is patented and none of the other firms can produce the product in the same manner as the monopolist. If the secrets related to the making of flower are revealed by professor to other firms in the market then they have access to same technology and will be able to produce the same product. Thus, they can enter the market now and this entry of other firms will increase the quantity supplied and thus price will decrease. Thus, monopoly power power will decline with the entry of other firms in the market.

Thus, there will be decrease in the price of flower as now there would be multiple sellers in the market because if its awareness among all the people.