Let's discuss how a corporation could be in a monopoly, and about market structures and business organizations.
There is 4 market structures such as, pure competition, monopolistic competition, oligopoly and pure monopoly.
~Lindsey Schuman~ My market structure and business organization is Corporation in Monopoly
Business organizations is the ownership structure of a company or firm.
What are business organizations?
A corporation is a legal entity, owned by individual stockholders, each of whom has limited liability for the firm's debt.
The advantages of a corporation is that they have more potential for growth than other business forms. By selling shares on the stock market, corporations can raise large amounts of capital.
Can someone tell me what the disadvantages of a corporation?
Disadvantages and Advantages
I know that question! Corporations have disadvantages such as expense and difficulty to start-up, double taxation, and potential loss of control by the founders, and more legal requirements and regulations.
It allows monopolies to control output and charge higher prices.
While there are many type of monopolies all are characterized by a single seller that controls an entire market.
In a market with economies of scale, bigger is better. An industry that enjoys economies of scales can easily become a natural monopoly.
A good example is a hydroelectric plant, which generates electricity from a dam on a river. A large dam is expensive to build. However, once the dam is built, the plant can produce energy at a very low additional cost simply by letting water flow through the dam.Output increases, and when more units of electricity is spread cost drops.