MonopolyMarket structure with a single firm dominating the marketA monopoly (from Greekμόνος, mónos, 'single, alone' and πωλεῖν, pōleîn, 'to sell') is a market in which one person or company is the only supplier of a particular good or service.
Market powerIn economics, market power refers to the ability of a firm to influence the price at which it sells a product or service by manipulating either the supply or demand of the product or service to increase economic profit. In other words, market power occurs if a firm does not face a perfectly elastic demand curve and can set its price (P) above marginal cost (MC) without losing revenue.
Pricing strategyA business can choose from a variety of pricing strategies when selling a product or service. To determine the most effective pricing strategy for a company, senior executives need to first identify the company's pricing position, pricing segment, pricing capability and their competitive pricing reaction strategy.Competition lawLaw maintaining market competitionCompetition law, also known by many as antitrust law, is the field of law that promotes and maintains market competition by regulating anti-competitive conduct by companies. The history of competition law reaches back to the Roman Empire. The business practices of market traders, guilds, and governments have always been subject to scrutiny, and sometimes severe sanctions.
Competition (economics)In economics, competition is a scenario where different economic firms are in contention to obtain goods that are limited by varying the elements of the marketing mix: price, product, promotion and place. In classical economic thought, competition causes commercial firms to develop new products, services and technologies, which would give consumers greater selection and better products.Barriers to entryIn theories of competition in economics, a barrier to entry, or an economic barrier to entry, is a fixed cost that must be incurred by a new entrant, regardless of production or sales activities, into a market that incumbents do not have or have not had to incur. Because barriers to entry protect incumbent firms and restrict competition in a market, they can contribute to distortionary prices and are therefore most important when discussing antitrust policy.
Article 102 of the Treaty on the Functioning of the European UnionArticle 102 of the Treaty on the Functioning of the European Union (TFEU) (formerly Article 82 of the Treaty establishing the European Community) is a provision in the European Union competition law that prohibits abusive behaviours by a powerful business. The article applies to a business that holds a dominant position in a specific market, which is interpreted as the possession of a market power that allows a business to act independently of its competitors to some extent.
Market (economics)In economics, a market is any structure that allows buyers and sellers to exchange goods, services and information. The exchange of goods or services, either with money or without it, is a transaction. In free market economies, they are the process by which prices and allocations of goods and services are established. Markets facilitate trade and enable the distribution and allocation of resources in a society by allowing tradeable items to be evaluated and priced.Anti-competitive practicesAnti-competitive practices are business or government practices that prevent or reduce competition in a market. Antitrust laws ensure businesses do not engage in competitive practices that harm other, usually smaller, businesses or consumers. These laws are formed to promote healthy competition within a free market by limiting the abuse of monopoly power.
Industry (economics)In microeconomics, an industry is a branch of an economy that produces a closely related set of raw materials, goods, or services. For example, one might refer to the wood industry or to the insurance industry. When evaluating a single group or company, its dominant source of revenue is typically used by industry classifications to classify it within a specific industry.Price-based sellingPrice-based selling is a specific selling technique in which a business exclusively reduces their price in attempt to close the sales cycle. Price-based selling clearly exists in businesses such as: commodity sales, auto sales, hospitality, and even some retail stores. However, it is only recommended that commodity items like petroleum be sold exclusively by price.RecoupmentFor recoupment in terms of U.S. tax law, see equitable recoupment. Recoupment, in the music industry, is a financial agreement between an artist and a record label, where the latter pays for expenses such as recording and marketing, which later deducts from the artist's royalties until recovering the expenses. The recoupment rate is typically between 15 and 20 percent of sales revenue.*As an Amazon Associate I earn from qualifying purchases.