The term monopoly often evokes a sense of inequity that people are short-changed for not having...

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The term "monopoly" often evokes a sense of inequity that people are short-changed for not having choices and therefore prices are set and uncompetitive. This is certainly true for monopolies in consumer products, as the market would be distorted and end up with consumers paying a high price for substandard products or services. However, not all monopolies are the same. Some monopolies stem from the structure of a particular sector, and the high capital outlay required to set up shop-creating what is known as a natural monopoly. A natural monopoly is a type of monopoly in an industry or sector with high barriers to entry and start-up costs that prevent any rivals from competing. As such, a natural monopoly has only one efficient player. This company may be the only provider of a product or service in an industry or geographic location. Required: A) B) Discuss the concept of monopoly and why it is regarded as the least efficient type of market. In recent news, the Malaysia government will be reviewing all monopolies in the country to ensure that the public enjoy fair and better services. Present your own opinion/idea as to how TouchnGo, Pharmaniaga or other monopolistic companies should strategize their operations given the recent development in government's policy. C) In your opinion, should the government dismantle all monopolies in Malaysia. Discuss your answer. The term "monopoly" often evokes a sense of inequity that people are short-changed for not having choices and therefore prices are set and uncompetitive. This is certainly true for monopolies in consumer products, as the market would be distorted and end up with consumers paying a high price for substandard products or services. However, not all monopolies are the same. Some monopolies stem from the structure of a particular sector, and the high capital outlay required to set up shop-creating what is known as a natural monopoly. A natural monopoly is a type of monopoly in an industry or sector with high barriers to entry and start-up costs that prevent any rivals from competing. As such, a natural monopoly has only one efficient player. This company may be the only provider of a product or service in an industry or geographic location. Required: A) B) Discuss the concept of monopoly and why it is regarded as the least efficient type of market. In recent news, the Malaysia government will be reviewing all monopolies in the country to ensure that the public enjoy fair and better services. Present your own opinion/idea as to how TouchnGo, Pharmaniaga or other monopolistic companies should strategize their operations given the recent development in government's policy. C) In your opinion, should the government dismantle all monopolies in Malaysia. Discuss your answer.

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