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Describe the concepts of monopoly and collusion in a market economy. Give five examples of monopolies and collusion among sellers and their effects on the market economy.​

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babycakes124
Monopoly : has one supplier of a product. The seller here has market power and can control both price and quantity

Collision: when competing firms make a secret agreement to try to control a market. Collusion (practiced by cartels) is illegal in the United States. It reduces the level of competition in a market. Is more difficult in markets with large numbers of buyers and sellers.


Monopolies and collusion among sellers:
eliminate competitionIn industries with less competition, prices are likely to be higher
mahima6824soni

Monopoly is the single dominance over the supply of a particular commodity. Collusion is a joint decision made by the oligopoly firms to decide a firm's output and price, ending to make it a monopoly.

Salt industry commission, Luxottica and Tyson food are few examples.

In a Monopoly market, there is a single seller of a particular commodity or service. There is a restriction on the new entries of the firm in the market.

How monopoly effects the market economy?

  • The scope of innovation in a monopoly market  stands low as there is no competition existence.
  • The monopoly pricing creates deadweight loss as the transactions forgoes.
  • Monopoly and collusive market increases the price of the products as the firm is the price maker.

Five examples of monopolies and collusion among sellers are:

  1. De Beers
  2. Meta
  3. Tyson food
  4. Luxottica
  5. Salt industry commission

Thus, the monopoly and collusive market increases the price in the economy.

Learn more about monopoly, here;

https://brainly.com/question/23554442

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