Example of a government monopoly and a corporate monopoly, also why are they monopolys? Please help, it is for my high school econ class, and i am so lost !
2006-11-17 13:40:45 · 7 answers · asked by Jaym 2 in Social Science ➔ Economics
An example of a government monopoly is the postal service. It is a monopoly since it controls the largest part of the mail service. Even though people can use UPS as a postal service, it does not take up enough of the market share to make the postal service to be an oligopoly.
An example of a corporate monopoly would be an electric company. Cities do not allow more than one electric company to operate in a section of town because it would cost too much to put all the wires in. For this reason, people are forced to buy electricity from this company since it is the only company that provides it.
By the way,
A monopoly is the only provider of a good or service in a market. A monopoly can also have competitors, but the competitors have to have little market control.
2006-11-17 14:37:24 · answer #1 · answered by Hi 3 · 0⤊ 0⤋
Example of a private monopoly in many places is the electric utility provider. That's a "natural monopoly" -- is would be wasteful, redundant, and unprofitable if a bunch of companies all built electric cables and infrastructure in the same place and competed for a share for the business. It would be a mess. So it naturally tends to be just one company in a town or area that does this.
Example of gov't monopoly is the armed forces. A country could hire a private firm to provide national defense (and some countries in Africa do that to some degree) but usually a government wants to be in direct control of the people with the guns and tanks, and not have any "competition"; so the gov't forms its own military and makes powerful weapons illegal in the hands of anyone else.
2006-11-18 00:07:25 · answer #2 · answered by KevinStud99 6 · 0⤊ 0⤋
garaass is correct
American Government Education System (K-12) is another monopoly. Government builds schools as you must attend the school the government assigns. No choices are given. (I'm sure your teacher won't appreciate that answer.)
Private monopolies are actually very rare.
I'm sure someone will write something stupid like Wal-Mart, ExxonMobil, or MicroSoft. Those are NOT monopolies.
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2006-11-17 23:10:39 · answer #3 · answered by Zak 5 · 0⤊ 0⤋
an industry/service can be a monoploy due to reasons like:
1 very high investments required
2 the gestation period is very high, the time to recover the investments is high
3 security reasons
4 government policies
a govt monopoly : railways in india
pvt monopoly : essel packging, they make the tubes for toothpaste, face wash, ointments etc.. 2/3 world market share
2006-11-17 23:04:42 · answer #4 · answered by Charu Chandra Goel 5 · 1⤊ 0⤋
Charu Chandra Goel has the best answer.
Sometimes monopolies are just easier too. Having 100,000 different sets of phone lines, or railway tracks throughout the country??
2006-11-18 03:24:16 · answer #5 · answered by holdon 4 · 0⤊ 0⤋
Monopoly is there to be in control....Control of money; control of power; and hence control of peoples lives in a way. However, please do some research on this instead of relying on the chat line for school projects.....
By the way....Economics is the maximum use of minimum resources...you could use this one...
2006-11-17 21:50:38 · answer #6 · answered by deevoonay 3 · 0⤊ 2⤋
telephone company or electric company!!!
2006-11-18 01:50:56 · answer #7 · answered by monyx 3 · 0⤊ 0⤋