Name
Institution
Monopolies
Introduction
Monopoly is define in Economics, as the study of the market place by means of a single unit. Monopoly is also defined as market makeup into which a single traders manufacture along with putting the product into. The main intention of Monopoly was to educate people how this game would end up bankrupting along with offering unexpected wealth to one or few.
One example of a current monopoly is Pfizer incorporated that is a pharmaceutical company. This company is located in New York that is among the best category in sales globally. There was an immediate success in the company in 1880 due to the production of ant parasitic known as Santonin. Pfizer incorporated continued to date to purchase property as a way to expand its laboratory as well as factory on the block bounded by Street of Bartlett, Avenue that included Harrison and Flushing in additional to the Street of Gerry. Pfizer used that facility until 2005, when it closed its unique plant alongside with some others. Pfizer recognized its original organizational center of operations at 81 Maiden of Lane within Manhattan. In the year1906, the sales were in total of $3 million (Wyeth, 1987).
One of the examples of monopoly that was as e result of vertical integration was the history of Pfizer after the world War that had effect in scarcity of calcium citrate that was imported by Pfizer from Italy for the invention of citric acid, and this made the company to search for an alternative supply. Pfizer were capable into commercialize manufacturing of citric acid from the basis in 1919. This made Pfizer to develop skill in fermentation proficiency. This proficiency was practical to the mass manufacturing of penicillin in World War II. This was in response to necessitate from the government of the USA. The antibiotic was needed to treat injured Allied soldiers. Pfizer made most of the penicillin that went ashore with the troops on D-Day. Following the achievement of penicillin manufacturing in 1940s, this resulted to the penicillin becoming very inexpensive that made Pfizer to have very little turnovers for its labors (Boyes, 2002).
This monopoly had effect in the market place in that the company had no replacements or else competitors. This company had side effect in the discoverer of an invention for which there was elevated demand as well as preexisting supply not included. Monopoly has effect in the market place. There was minimizing in price as well as maximize of turnovers. Natural monopolies exist in Pfizer Company for the reason that it would be inexpensively wasteful to force this company into certain markets and industries. The start-up of this company is too high, limiting of supply along with profit margins been too small.
Competitors in Pfizer’s industry encourage lower prices as well as innovations of drugs that continue to improve the heath of Public American. The merger tends to lessen competition in the market place. The merger would lead to the anticompetitive effects in the market globally and this would have effect on the consumer paying prices that are high along with fewer alternatives in the choice of drug.
References
Boyes, M (2002). Monopoly The cause of all evil.London: Sage Publishers.
Wyeth, B (1987). History of Pfizer Monopoly. New York: New York University Publishers.
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