A firm ischaracterized as a monopoly if it dominates an industry or sector, and exhibits the following
Question:
A firm ischaracterized as a monopoly if it dominates an industry or sector, and exhibits the following behavior:
(1) operates in an industry or market with high barriers to entry,
(2) is the singular seller within that sector/industry or market,
(3) decides the price for its products/services, and/or
(4) engages in price discrimination.
The Federal Trade Commission (FTC) will not pursue regulation or antitrust action if thecompany simply has a better product, good management, or good timing. This does not qualify as improper conduct. If a company can justify its conduct in a way that benefits the consumer, then courts may find the firm's exercise of significant market power as legitimate. The question as towhether monopolies are good or bad is for consumers and the monopolist's competitors to determine.
What do LensCrafters, Sunglasses Hut, Target Optical, Rayban, Tiffany eyewear, and Prada eyewear all have in common?
The same owner. For this discussion board, please watch this profile on Luxxotica, an Italian manufacturer of eyewear, that has grown to dominate this market through internal growth, acquisitions and mergers. Luxxotica has recently merged with Essilor, a French manufacturer of lenses. This piece, entitled, "Sticker shock: Why are glasses so expensive?" was produced by 60 Minutes.
https://www.youtube.com/watch?v=voUiWOGv8ec
- Does Luxxotica dominate the eyewear market? I need a Explain and give examples.
- Is Luxxotica behavior anti-competitive? Are consumers better or worse off? I need a good Explain.
Expert Answer:
Luxottica indeed dominates the eyewear market through its extensive control over various brands and ... View the full answer
