(Microeconomics) The Theory of Monopoly Essay Example | Topics and Well Written Essays - 1250 words

(Microeconomics) The Theory of Monopoly - Essay ExampleProfessor of Cambridge University Joan Robinson (1933) made a report with decisive critics of the newly button-down opposition conception. In her work Economic theory of im amend competition she claimed, that the research of various objective laws of the economic theory was usually started with the consideration of the perfect competition conditions, treating monopoly as the corresponding peculiar case, while it was more correct to start any similar research with the monopoly consideration, treating the perfect competition conditions as a special case. (Mandler, 2002)In the modern market conditions there is no special classification of monopolies, though in the most general sense they may be divided into the four main classes. The first class is the simple monopoly for these or those products it can be private or state. The second class is the natural monopoly, when competition is impossible for technical reasons, for example, in the case with railroads, when it is not profitable for the second company to create parallel railways, or with underground, when another company would not develop another tunnel next to the already existing one. The third class can be called the network monopoly, when Microsoft creates such programs as Microsoft Word and Microsoft Excel, and people design them voluntarily, and very actively. In such case it is rather difficult for the competitor to enter the market, because everyone is already used to work with one program this is, so to say, voluntary, real by the buyer, monopoly, and there is also the acting consumers network. The fourth type of monopoly is, probably, the most important. It is the monopoly on ideas, that is, on the intellectual products when this or that discovery is made, it is necessary to compensate the expenses and to hasten the patent, because otherwise the owner of the