Market structure and Business organization: Corporation in Monopoly By: Ivory Belsky
Abby: No I have not, but does it have to do with providing goods or services to make the customers pleased?
Mike: Hey Abby! Have you heard of market structure and business organization?
Mike: Yes, sort of. Market structure refers to the characteristics of the market that describe the nature of competition and the pricing policy followed in the market. And, business organization is an entity aimed at carrying on commercial enterprise by providing goods or services, to meet needs of the customers.
Abby: Oh okay, I get it now! I know a monopoly is defined as a situation in which a single company or group owns all or nearly all of the market for a given type of product or service. But how can a corporation be a monopoly Mike?
Mike: Yes! The Post Office specifically was given monopoly status over the Royal Mall Group by Oliver Cromwell in 1654.
Mike: Well the easiest way to become a monopoly is by the government granting the company the exclusive rights to provide goods or services. Corporations can become monopolies by being the single firm who holds 25% or more of a specific market.
Abby: That makes total sense! For instance, an example of a monopoly would be the Post Office because they control the majority of mail carrying. And since the the Post Office is the only one who does this service they have monopoly power over the resource, right?
Abby: Cool! So what we learned today is what market structure and business organization are and that corporations can become monopolies by being the single firm who holds 25% or more of a specific market.