Evaluate the following statement using economic reasoning: “a


Evaluate the following statement using economic reasoning: “A monopolist can charge whatever she wants because she is the only source available.”

Example answer:

“A monopolist can charge whatever she wants because she is the only source available”. This statement is not true because a monopolist cannot charge whatever she likes. She can only choose either what price to charge or what quantity to produce. Even though the monopolist uses control over the price of output, profit maximization means she cannot charge whatever price she wants. Sometimes, even the monopolist finds herself in situations where she has to reduce the price in order to sell more. But then again, if the monopolist knows what its customer want and want, as well as their buying behaviors, it can use price differentiation and take away consumer surplus. The way to do that will be to restrict output onto the market to take advantage of its leading position over a period of time, or as a way to raise the price. Once the monopolist chooses a price, she is forced to sell only so much as demanded by consumers at that price, given by the demand curve. On the other hand, the monopolist can use price discrimination to gain added profits by charging the maximum price only the maximum price that consumers will be willing to pay (Economics Online, n.d.).


Economics Online. (n.d.). Retrieved April 30, 2017, from http://economicsonline.co.uk/Market_failures/Monop…

Identify and describe a real world example of an oligopoly. What characteristics of this market fit the definition of an oligopoly? What role does advertising play in this market? Is this consistent with what you’ve learned about advertising and oligopoly in this course?

Example answer:

First and foremost, Oligopoly is a market in which the sellers have control to raise the product price. In oligopoly market, the sellers produce products that are identical, with the same features and inputs, which create a high level of interdependence. The fact that they depend on each other encourages competition in non-price-related areas, like advertising and packaging (Monopoly Power, n.d.).

The soft drink market is dominated by a handful of companies, however the two most powerful and popular ones are Coca Cola and Pepsi. Coca cola newest advertisement for has been the name on the bottle. Even if people with names that are not as common as “Maria” and “Ashley” were not that thrilled about the whole idea, other people loved it. It is kind of cool for one to have their name on the bottles Customers loved it because it is kind of cool for one to have their name on the bottles. As for Pepsi, they just recently adapted the same advertising technique but instead of having people’ name printed on the bottle they feature some of the most inspiring and famous music quote. Advertisement plays a great role in this market because there are so many other choices out there that companies need to always reinvent themselves and their products to motivate people to buy their product instead of the others (Miller, 2015). As far as I am concerned, it is consistent with what I learned about oligopoly during the weekly forum and about advertising in general.


Miller, M. (2015, June 15). Pepsi Takes Aim at Coke’s Polar Bear and Share-a-Coke Campaigns – brandchannel:. Retrieved April 30, 2017, from http://brandchannel.com/2015/06/15/pepsi-direct-ai…

Monopoly power. (n.d.). Retrieved April 30, 2017, from http://economicsonline.co.uk/Market_failures/Monop…

Oligopoly Examples. (n.d.). Retrieved April 30, 2017, from http://examples.yourdictionary.com/oligopoly-examp…

Each answer needs to be 250 words minimum.

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Order your essay today and save 20% with the discount code RESEARCH