Monopoly

Monopoly

Alot of people assume that the market has alot buyer and seller in the market place. This mean we have competition in the market. Which makes the product of the price to change to respone to change in demand and supply. In a market with many buyer and seller this mean that everyone in the market has the equal ability to influence the price.But theres one kind of market called monopolistic market which only has one supplier. of course not everyone can enter the monopoly market easily. If a company wants to enter the monopoly market, the company will need to break through several barriers. 

Characteristics of Monopoly

• Profit Maximizer: Maximize the profit of a product to fullest.
• Price Maker: Got power to decide the price of the product
• High Barriers to Entry: Other seller will need a lot of money or power to enter the market.
• Single seller: Theres only one seller
• Price Discrimination:  can change the price and quality of the product. 

A very good example of monopolistic:

                                  This is Genting casino which is also The only casino in malaysia.

In the view of economic, Genting Highlands is  a pure monopoly. This is because genting is a single seller and no close substitutes due to it is the only legal casino that get the license from government. If people want to gamble, they have no others choices and only can gambling at Genting Highlands, unless they go to others country like Singapore. Apart from thatt, the reason why Genting Highlands can become a monopoly firm is also because it has a high barriers to entry.The hardest barrier is the legal license to operate casino, so it’s monopoly position may be protected by the licensing that gave by government. This barriers to entry made other company to try to enter casino industry in malaysia became extremely difficult

For my opinion, I think that the one of the biggest reason why many people love to go Genting Highlands is because of the beautiful casino. The weather at there is also a reason why Malaysians like to go there. Malaysia is a all year round summer, Genting is like paradise for malaysian because it is all day cold because it is located on top of the mountain.  This is the reasons why Genting Highlands is so successful and popular in Malaysia. For my personally, Genting Highlands is also one of my favourite places in Malaysia, even I still under age and cannot go into casino, yet I like to go the theme park and have fun at there with my friends during holidays.

LINK: http://www.gentinghighlands.info/