What is a quasi monopoly

Answers:
Quasi-monopoly is a kind of monopoly where there is more than one service provider for a particular good/service but the nature of the competition is such that similar kind of service/pricing is offered to the customers.




Generally speaking, quasi-monopolies occur when the marketplace in question has several characteristics:

  1. There are a very few number (generally 4 or less) of very large suppliers
  2. The requirements of the market are such that there is an extremely high barrier-of-entry to be competitive; that is, large, well capitalized (and possibly vertically-integrated) companies cannot effective be challenged by any newcomer not of the same size. In essence, the market is impenetrable by smaller (and/or more innovative) companies.
  3. The type of product or service being produced leads to very little (if any) product differentiation between the companies in the market
  4. Pricing is thus more a factor of the lack of competition between the few existing companies, than it is supply/demand.

For instance, a good place where a quasi-monopoly can occur is aluminum production. Ownership of supplies of aluminum create a barrier to entry, and the extremely large amounts of capital (and large efficiency gains that being fully vertically integrated provide) required means that such industries tend to have only a couple of huge firms. The product (processed aluminum) is very straightforward. Thus, this is a marketplace where quasi-monopolies almost always exist, with seldom more than 2 or 3 companies in the entire market.
ad
Relevant answers:
  • Is monopoly better than monopoly express or monopoly express better than monopoly?
    If you want something entertaing for a short period of time Monopoly Express is better.If you want somethig that is longer , Monoploy. But you could play the original Monopoly on the Monopoly Express...
  • What is are monopolies?
    A monopoly is a form of market structure in which there is only one firm which produces a certain good or service that has no close substitudes and in which the firm is protected from competition by...
  • What is a monopoly?
    When one business or company dominates its area and squeezes out all its competition, the result is the consumer does not have a free choice, and inevitably the price of it's products or services...
  • What are monopolies?
    A company where there are many buyers but only one seller.
  • What are similarities between a monopoly competition and a monopoly?
    They both have to deal with money and buying out.

    • Can you answer these questions?