Monopoly and AntitrustPolicy Assignment Example | Topics and Well Written Essays - 250 words

Monopoly and AntitrustPolicy - Assignment ExampleWhat would happen if the law preventing competition in this market was removed? Explain your answer.harmonize to Foldvary (2010), A natural monopoly is defined in economics as an industry where the fixed cost of the capital goods is so high that it is not profitable for a second firm to enter and compete. There is a natural reason for this industry being a monopoly, namely that the economies of scale require one, rather than several, firms. little ownership would be less efficient. The USPS is a natural monopoly. Costs would go up if competition was allowed in this market. With natural monopolies, one firm can comprise an entire industry and still achieve the lowest price.4. Patents are granted every 20 years. However, drug companies dont have patents on upstart drugs for this long a time because it takes several years for FDA approval. In your opinion, should drug patents be extended for 20 years? Who would benefit? Who would not b enefit?I do not believe that drug patents should be extended for 20 years simply because of the high cost of new drugs. Many people cannot collapse their medication unless it is generic. The consumer would not benefit, but the drug companies