What would happen in a market that is transformed from a perfectly Essay - 1

What would happen in a securities industry that is transformed from a short competitve securities industry to a pure monopoly - Essay grammatical caseThe only thing that affects the price of the product is the demand and supply of the product. In such a situation, the consumers benefit.They give up a high variety of sellers to choose from who argon constantly trying to find ways to calumniate their prices so that the customers buy from them. In this struggle, the customer ends up finding the lowest price. Also, in a undefiledly competitive market, there is high potential for innovation. As the sellers and producers aim to minimize their costs in frame to lower their prices, they invest money in research and development and, hence, the state experiences innovation and technological advancements.A perfectly competitive market, however, is not the best place for a seller. Due to fierce competition and insufficiency of market power, sellers experience low margins of profits on t he goods they sell (Case and Fair). Moreover, producers must constantly be on their toes to monitor the performance of their competitors and must try and stay a step ahead of them. In perfect competition, producers and seller try and differentiate their offerings through advertisements and creating brands. Again, they must do this through incurring marketing expenditures which would go on increase their costs and make the environment very risky for them.The dynamics of a monopolistic market are the opposite as compared to a perfectly competitive market. If a perfectly competitive market were to transform into a pure monopoly, it would become a very stress free zone for the firm. In a pure monopoly, the firm would have complete control over the price of the product. Also, because there are no competitors, it does not need to worry about the customers switching to another seller. It is purely to the firms discretion what price it wants to set for the product. (Case and Fair)Needless to say, the customers have to suffer in such a setting. The commodious list of