Assignment 1 Market Structures Most European countries have nationalized their universities and colleges. Consider that some countries have also used the law to ban private colleges. Should higher education be classified as a natural monopoly in these European countries? Explain and justify your answer and use appropriate examples to support your conclusions.
Next, consider the case of several large, established pharmaceutical manufacturers such as Merck. What type of market form do you believe that such manufacturers operate under? Jjustify your answers and use appropriate examples to support your conclusions.
Quotations, paraphrases, and ideas you get from books or other sources of information should be cited using APA style. Help with citing sources can be found through the Academic Resources page under the Help menu.
By the due date assigned, post your initial response in the Discussion Area below. Through the end of the module, read all of the other students’ submissions, and post substantive comments to at least two classmates.
Assignment 1 Market Structures
Quality of initial posting, including fulfillment of assignment instructions
Quality of responses to classmates
Frequency of responses to classmates
Reference to supporting readings and other materials
Language and grammar
Higher Education Sector
It is improper to classify higher education as a natural monopoly in Europe. Natural monopoly arises in a market where there are barriers to entry such as high initial capital. Monopolies tend to offer same identical products with no substitutes. They can also emerge in sectors that require unique technology, raw materials or other similar factors. However, different universities offer different courses and admit students with varying academic qualifications. Higher education facilities in Europe do not offer identical programs nor do they require unique technology or raw materials to operate. As such, these facilities do not qualify as natural monopolies. The banning of some private universities only leads to reduced competition in the industry (Haug, 2003).
Pharmaceutical Manufacturing Sector The several large and established pharmaceutical manufacturers such as Merck & Co, Pfizer, GlaxoSmithKline, and Johnson & Johnson operate under oligopoly market structure. Some of the oligopolistic characteristics associated with this industry include few dominant firms and substantial barriers to entry. First of all, the pharmaceutical sector has several barriers to entry in terms of legal restrictions and cost structure. For example, government patent gives the original innovator of a certain drug at least 20 years to supply the product without competition. The argument, in this case, is that a patent is important to safeguard the economic gains of the innovating entity. On the same note, brand loyalty advantage gives the several established pharmaceutical manufacturers an upper hand in the industry. By being innovators of several drugs, these firms easily acquire the first-mover advantage because the effectiveness and quality of substitute generic drugs is usu
Experienced Academic Essay Writers: Premier Essay Writing Services.
Are you in search of a tailored essay service that aligns with your precise requirements? Look no further than study-tutors.com, where we have established ourselves as the foremost source of authentic, top-tier essays offered at student-friendly rates. Our adept writers are dedicated to crafting the paper you require, bolstering your academic achievements along the way. Designed to furnish you with adept writing assistance, our personalized essay writing service is meticulously tailored to foster your success. Should the demands of your college assignments be overwhelming, rest assured that our seasoned essay writers are here to support you every step of the way.