Economics Question on monopoly and perfect competitive firm.?

Question

Find an industrial example of:

1 A perfect competitive firm or industry

2 A monopoly

a) do such a firm or industry compete based on price?

b)do they use other non-price methods of competition? if yes, what are some methods used?

Answer 1

Lots of companies with monopoly like market power. In fact, it's hard to find an exception. Examples with lots o' market

power:

microsoft

local electric company

local cable company

anyone who owns a patent (e.g., lots of drugs)

musicians, or anyone who owns a copyright

But then you said 'industries'. Hard to find a true monopolist for an entire industry....

The only monoploies that exist are those created and protected by the government. Everyone else has at least a few competitors. For the Walmart Haters there is Costco, Target, and K-mart, Dollar General, Electric Company

Water Works

Pennsylvania Railroad

Shortline

B&O Railroad

Reading Railroad etc, ect...

The only real monopolies are the Railroads (government protected), Utility Companies ( Gas, Electric, and Water). Sanitation services. Government schools, in most states you have to pay school tax whether or not your kids attend or if you even have kids or not.