Antitrust practices and market power Essay Example | Topics and Well Written Essays - 500 words

Antitrust practices and market power - Essay Example patch the pecuniary costs associated with this Google antitrust behavior is price fixation and control for the search engine and website credit line prices, the non-pecuniary costs associated with the behavior include throwing other website companies out of business, or making them incur losses, which will in turn slow down the economical growth.Monopoly structure entails the operation of a single seller in the market, while the oligopoly structure involves the presence of only few sellers in the market, which work in collusion for their economic benefit (Tucker, 2010). Both monopoly and oligopoly are achieved through effecting founding barriers for other business into the same market. The barriers can be natural barriers, such as high capitalization, infrastructure or specific resource requirement for entry to the market, which is only available to one or a few firms. Barriers can also be presidency barriers, where the gover nment institutes some restrictions in form of legislation to prevent other businesses venturing into a certain industry, which is only designated for a particular operator (Tucker, 2010).Oligopolies and monopolies are not always bad for the society. Even though oligopolies and monopolies allows hardly few firms to determine the quantities of products they avail to the market or fix prices they charge for such products, there are situations under which monopoly and oligopoly are beneficial to the society. Monopolies can allow a firm to take advantage of economies of scale of measurement by producing more commodities that lower the long run average costs, making it possible for the firm to mountain pass low prices for its products (Tucker, 2010). The same case applies to firms operating under oligopoly, where it is only a few of them which are producing for the salient market needs of the customers. This allows such firms to enjoy economies of scale, through producing in higher qu antities,