Monopoly and AntitrustPolicy Assignment Example | Topics and Well Written Essays - 250 words

Monopoly and AntitrustPolicy - appointee ExampleWhat would happen if the law preventing competition in this market was removed? Explain your answer.According to Foldvary (2010), A innate(p) monopoly is defined in economics as an industry where the fixed cost of the capital goods is so high that it is not profitable for a second firm to enter and compete. There is a instinctive reason for this industry being a monopoly, namely that the economies of scale require one, rather than several, firms. Small-scale will power would be less efficient. The USPS is a natural monopoly. Costs would go up if competition was allowed in this market. With natural monopolies, one firm can control an entire industry and still achieve the lowest price.4. Patents argon granted every 20 days. However, drug companies dont have patents on new drugs for this desire a time because it takes several years for FDA approval. In your opinion, should drug patents be extensive for 20 years? Who would benefit? W ho would not benefit?I do not believe that drug patents should be extended for 20 years simply because of the high cost of new drugs. Many people cannot afford their music unless it is generic. The consumer would not benefit, but the drug companies