The Benefits And Cons Of Perfect Competition And Monopolies

1) To me, market competition is the act of various different providers of goods and services trying to accomplish their goals. These goals can be to increase market share, profits, revenue etc…. I would say that street food hot dogs I recently bought in New York are a good example of perfect competition. The food is all priced relatively cheap, since they are price takers, the food is almost the same, buyers know what the price should be and the available substitutes, and there are very low barriers to entry/exit.

2) To me, a market monopoly is a good or service that has no available substitute. I think that since Monopolies are illegal in the United States, it is a hard to find a product that is a true Monopoly, but I think that Microsoft

I believe that both have pros and cons, and that both can be argued strongly. Monopolies do have benefits mainly that they can efficiently utilize available resources, and can benefit from economies of scale. However, they can also provide substandard service because they don’t have to fear competition. Perfect competition is the same way, there are pros and cons. The pros are that consumers get the best deal, and that anyone can sell the product. The main con is that low margins may prevent the product from advancing, as there will be minimal profit for research and development. Overall however, I tend to be for perfect competition and against

As of 2015, Netflix is in 1/3 of American households, whereas Amazon Prime is only used by 13% of American Households. Moreover, when looking at market shares, Netflix has a 37% market share. In contrast, services such as Youtube have only 17% and Amazon has 4% market share (Fortune).

Lululemon Athletica dominants the yoga apparel sector, however, when it comes to general athletic apparel brands such as Nike, Under Armor, Adidas, Puma, ETC. all take a spot alongside Lululemon as top competitors. It’s for this reason that I don’t believe Lululemon could be considered a monopoly in the world of athletic apparel.

Sirius XM could be considered a monopoly in the world of satellite radio. Sirius XM seems to have the most prevalent presence in this industry. However, if there were a competitor for the radio itself Spotify and Pandora would likely be considered competition.

American Water Works could also be a monopoly in the public utility sector. This company has agreements with the government that allow them to be the sole provider of a necessary utility for the majority of the