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Every time gasoline prices rise, Exxon Mobils reveues increase If

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Every time gasoline prices rise, Exxon Mobil\'s reveues
increase. If you believe that the monopoly model (price
making model) can be used to predict Exxon Mobil\'s
behavior, does the empirical evidence support the
monopoly model? If so, why?; if not, why not?
Solution
hi
A monopoly exists when a specific person or enterpriseis
the only supplier of a particular commodity (this contrasts
with a monopsony which relates to a single entity\'s control
of amarket to purchase a good or service, and with
oligopoly which consists of a few entities dominating an
industry)Monopolies are thus characterized by a lack of
economic competition to produce the good or service, a
lack of viablesubstitute goods, and the existence of a high
monopoly price well above the firm\'s marginal cost that
leads to a highmonopoly profit. The verb \"monopolise\"
refers to the process by which a company gains the ability
to raise prices or exclude competitors. In economics, a
monopoly is a single seller. In law, a monopoly is a
business entity that has significant market power, that is,

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the power to charge overly high prices. Although
monopolies may be big businesses, size is not a
characteristic of a monopoly. A small business may still
have the power to raise prices in a small industry (or
market).
A monopoly is distinguished from a monopsony, in which
there is only one buyer of a product or service; a monopoly
may also have monopsony control of a sector of a market.
Likewise, a monopoly should be distinguished from a cartel
(a form ofoligopoly), in which several providers act
together to coordinate services, prices or sale of goods.
Monopolies, monopsonies and oligopolies are all situations
such that one or a few of the entities have market power
and therefore interact with their customers (monopoly),
suppliers (monopsony) and the other companies
(oligopoly) in ways that leave market interactions distorted.
Monopolies can be established by a government, form
naturally, or form by integration. In many jurisdictions,
competition laws restrict monopolies. Holding a dominant
position or a monopoly of a market is often not illegal in
itself, however certain categories of behavior can be
considered abusive and therefore incur legal sanctions
when business is dominant. A government-granted
monopoly or legal monopoly, by contrast, is sanctioned by
the state, often to provide an incentive to invest in a risky

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Every time gasoline prices rise, Exxon Mobil \'s reveues increase. If you believe that the monopoly model (price making model) can be used to predict Exxon Mobil \'s behavior, does the empirical evidence support the monopoly model? If so, why?; if not, why not? Solution hi A monopoly exists when a specific person or enterpriseis the only supplier of a particular commodity (this contrasts with a monopsony which relates to a single entity \'s control of amarket to purchase a good or service, and with oligopoly which consists of a few entities dominating an industry)Monopolies are thus characterized by a lack of economic competition to produce the good or service, a lack of viablesubstitute goods, and the existence of a high monopoly price well above the firm\'s marginal cost that leads to a highmonopoly profit. The verb \"monopolise\" refers to the process by which a company gains the ability to raise prices or exclude competitors. In economics, a monopoly is a single seller. In law, a monopoly is a business entity that has significant market power, that is, the power to charge overly high prices. Although monopolies may be big businesses, size is not a characteristic of a monopo ...
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