StudentShare solutions
Triangle menu

Microeconomics - Essay Example

Not dowloaded yet

Extract of sample
Microeconomics

Though, monopoly is not a good thing in the market, it cannot be avoided from the market. Suppose, when the seller has a monopoly over certain resources which are used for producing a particular item such as oil, minerals etc. Sometimes, when a seller is equipped with a unique skill, which others in the same industry lack. In certain occasions, monopoly is legally attained for the patent or copy right for a product/service. Government also allows certain organisation to have sole power over certain product/service by legislation. One such organisation is what this paper is going to discuss about.
Indian Railway comes under the department of Indian Government, which came into being in1853. It is the world's second largest rail network. All the rail operations are managed by the state-owned Indian Railways, which fall under the jurisdiction of Ministry of Railways. Rail transport is one of the common modes of the transport for large population of the country. Its network spreads across 28 states and 3 union territories with limited services to places like Nepal, Bangladesh and Pakistan. (Indian Railways, para. 4) It is the second largest commercial employer in the world and has more than 1.54 million employees and runs as many as 11,000 trains daily. (Official web site of Indian Railway). It has been assisting the growth of Indian economy directly and indirectly since its inception. During the many ups and downs of the country's economy in the past, railway has been an integrating force to stabilize the economy and maintain economic growth of the country.
Nature of Monopoly of Indian Railway
Indian Railway is not a private corporate body. It operates under the Railway Department of Ministry of Railways of Government of India. But, in the recent times it is striving to attain the professionalism in management which is similar to that of giant corporate bodies. Since its inception, Indian Railway has been enjoying monopoly in the rail transport by virtue of the sole power granted by legislation. In most of the countries in the world, rail transport is owned and managed by Government. In fact, the reason for the non-existence of competition is that railway requires huge investment in the form of physical assets and human capital and the return there from is also uncertain. In such a situation, private players will not enter the market with fear of loss of huge amount.


Causes for non-existence of Competition (Reasons for Indian Railway's Monopoly)
1. Created and maintained by legislation
Indian Railway came into force by an Act of Parliament and it is being protected by the provisions of the Act. It has been serving Indian populace for over fifteen decades with right track record and public image. It is not enjoying the privileges of a private corporate body, but trying to introduce professionalism in operations and management.
2. Huge initial investment
Private players always have a second thinking about posing a threat to the publicly managed railway. One reason for such thinking is the huge investment requirement. Railway needs huge initial investment, which cannot be easily obtainable from the market.
3. Uncertain Return
Not only is the huge ...Show more

Summary

Monopoly is a market conditions where there is only one seller to meet the requirements of large number of buyers. In other words, monopoly exists where there is no competition. The buyers have no alternatives to select and purchase in a monopoly market. The single seller determines the price of his product, the supply at any point of time, and indeed, the quality of the product…
Author : nmills
Microeconomics Essay essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Microeconomics Essay"
with a personal 20% discount.
Grab the best paper

Related Essays

Microeconomics essay
But why in our ever changing world, the government has to withdraw its support for higher education and tuition fees in universities have to be increased? The knowledge and skills acquired from basic education is as essential as food and clothing for a simple man wanting to survive his daily life.
8 pages (2000 words) Essay
Microeconomics article analyses essay
The rise in the rents has taken a lead as compared to salary rises, making it difficult for people to afford rents. As a consequence of the sharp rise in the rent the tenants are going into arrears. The article uses the principle of supply and demand for the explanation of the rise in the rents.
2 pages (500 words) Essay
Assessment Item Macro and Microeconomics Essay
Hence according to the given study the price elasticity of demand for petrol in the short run as well as in the long run is inelastic because their PED lie between zero and one. 1b. The short run PED is smaller or relatively inelastic than the long run PED because it is often easier to switch between products in the long run than in the short run (Perloff 2003).
8 pages (2000 words) Essay
Gold Market Macro and Microeconomics Essay
Several international economic experts, following Nouriel Roubini of New York University, echoed the idea that gold is in bubble. However, since Roubini’s declaration in 2009, gold price has rose 50 percent (Durden).On the other hand, Marc Feber debunk that idea by explaining that gold’s appreciation to $1,900 an ounce reveals that there is no bubble.
3 pages (750 words) Essay
Econs Macro and Microeconomics Essay
The current account balance can be obtained using the mathematical formula below; CAB = X - M + NY + NCT (Krugman & Wells, 2008). Where CBA is the current account balance X – Represents exports M – Represents imports NY – Represents Net income from abroad NCT – Represents current transfers A budget balance occurs where there is either a deficit or a surplus.
6 pages (1500 words) Essay
Economic Inequality Macro and Microeconomics Essay
However, there are some goals which may conflict with the other. This is because in order to achieve certain goal, there may be a need to sacrifice another. Because of this, countries need to prioritize their goals for their economies, assess the trade-offs and later on decide on the best way to achieve a certain goal.
6 pages (1500 words) Essay
Microeconomics Essay
211). The number of buses in Utropica is represented by Cobb-Douglas function, which is considered to be linear and homogenous demonstration of constant return by changing of production scale. According to the fact that a sum of indicators’ powers defines type of a function concerning its increase or decrease, we can predict functional behavior beforehand by making the following calculation: F(L, K) = 1.1 + 0.41 = 1.51 Taking into account that calculated figure exceeds 1, it can be concluded that our function will reproduce increasing returns to scale.
5 pages (1250 words) Essay
Microeconomics Bachelor Essay
The history of monopoly power in the computer industry is in fact extraordinarily clear-cut. It all started with Tom Watson Sr., who learned the fine art of devastating competitors while selling for the then-notorious National Cash Register Corp. By all measures, the callousness of IBM in the 1920s and '30s makes Bill Gates and company look like Santa Claus.
3 pages (750 words) Essay
Microeconomics College Essay
Cross elasticity of demand is calculated by measuring the percentage of change in the quantity demanded divided by the percentage change in the price of a substitute or complement. For example, if in response to a 10% increase in the price of fuel, the quantity of new cars (which are fuel inefficient) demanded decreased by 20%, the cross elasticity of demand would be -20%/10%= -2.
2 pages (500 words) Essay
Essay - Microeconomics
Their products are undifferentiated where each industry player have the perfect knowledge of the price, cost and other relevant information of the market. Sellers can also enter and exit the market without any barrier. The
3 pages (750 words) Essay
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT
Comments (0)
Rate this paper:
Thank you! Your comment has been sent and will be posted after moderation