Search results
Results from the WOW.Com Content Network
In economics, a government-granted monopoly (also called a "de jure monopoly" or "regulated monopoly") is a form of coercive monopoly by which a government grants exclusive privilege to a private individual or firm to be the sole provider of a good or service; potential competitors are excluded from the market by law, regulation, or other mechanisms of government enforcement.
One of the government's few anti-monopoly victories was United States v. AT&T, which led to the breakup of Bell Telephone and its monopoly on U.S. telephone service in 1982. [30] The general "trimming back" of antitrust law in the face of economic analysis also resulted in more permissive standards for mergers. [30]
Dumping, also known as predatory pricing, is a commercial strategy for which a company sells a product at an aggressively low price in a competitive market at a loss.A company with large market share and the ability to temporarily sacrifice selling a product or service at below average cost can drive competitors out of the market, [1] after which the company would be free to raise prices for a ...
PG&E and other utility providers are market failures that we refer to as natural or public monopolies. Normally, government tries to prevent monopolies from emerging (think of the current case ...
However, due to the low cost of the information in monopolistic competition, the barrier of entry is lower than in oligopolies or monopolies as new entrants come. [ 18 ] An Oligopoly will typically see high barriers to entry, due to the size of the existing enterprises and the competitive advantages gained from that size.
Government-granted monopolies often closely resemble government monopolies in many respects, but the two are distinguished by the decision-making structure of the monopolist. In a government monopoly, the holder of the monopoly is the government itself and the group of people who make business decisions is an agency under the government's ...
On the bright side, since persistently high inflation, induced by hefty tariffs, would prevent the Fed from lowering borrowing costs, cash-like and bond investments could keep some of their luster ...
Rate-of-return regulation (also cost-based regulation) is a system for setting the prices charged by government-regulated monopolies, such as public utilities.It attempts to set prices at efficient (non-monopolistic, competitive) levels [1] equal to the efficient costs of production, plus a government-permitted rate of return on capital.