If you needed $2,000 in a week, would you have enough savings? This scenario could easily become reality. For example, an emergency ambulance or a family’s flights, say for a funeral, could cost more.
Economics 101 is that a monopoly is fundamentally any enterprise with substantial ‘market power’ – that is, the capacity to set prices and cut back on quantity with little, if any, response from customers. While most monopolies arise through natural monopoly conditions (for example, essential services including water and electricity distribution), others simply develop when circumstances facilitate their entrenched establishment. Such conditions include high barriers to entry for potential competitors, legislative encouragement and context-specific advancement.
A brief word to all those first year university students studying Commerce: there’s something special about the first weeks of uni. It’s not the opportunity to meet new people and make new friends (though that’s obviously a good thing). Nor is it the chance to get involved in all kinds of different activities on and around campus (through broadening your horizons is a worthy pursuit).
As we enter a new university year, it is worth considering a simple question.
Who studies economics?