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  • 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.
  • Monopoly
  • 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.
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