Discuss The View That Although Incumbent Monopolies Are Likely To Be Inefficient, The Pursuit Of Monopoly Positions By Oligopolistic Firms Is The Main Driver Of Innovation And Increased Efficiency In Our Economy

NameUniversityCourseTutorDateOligopolistic firms and innovation in our economyIntroductionOligopolies have increasingly played a key role in the modern business milieu . Monopolies have contributed to the oligopolistic pursuits by these firms and they affect the economy in contrary ways . It is important to define monopolies and oligopolies in to understand the uniqueness between the two . A monopoly is a foodstuff which is characterised by the efficacy of the existing firms to defend the services or goods which be provided , and decide who to give access to Monopolies thus feature a pretermit of substitute for the products in the market and a lack of competition in the market . Most governments restrict monopolies derelict to the negative effects associated with themOn the other hand , oligopolies be markets or ind ustries which have fewer sellers who influence each other to tick off the market (Lancaster and Withey 2006 : 140-145 .

In this type of market , there be few sellers who monitor the actions of others , and this influences the decisions which they make . The decisions of one firm argon therefore influenced , and influence decisions made by other firmsWeaknesses of uncompetitive firmsHowever , as previously mentioned , monopolistic firms are deemed to have certain(p) weaknesses , which necessitates their give by most governments . The major weakness of these types of firms arises from their ability to mince the market . Due to this ability , they can tip the market in to boost thei r profits . Since the monopoly market featu! res no substitutes for...If you need to get a full essay, order it on our website: OrderEssay.net

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