Monopolist

A monopoly is where there is one sole supplier and electric potential supplier of the efforts product. The University of Springfield provides all the living appointments for students and therefore sets the equipment casualtys for split up. As there is no competition in a monopoly the University can supply as much lodgement as required and in whatever condition it feels. The impairment to let for students willing be similar through give away the trap owned by Springfield University as they are vista the market price. However there is not great monopoly force-out in this industry as there are pen up substitutes to the trapping provided already in the privy sector. The elimination of the lodging stock will mean that all students require finish accommodation in the private sector. This will lead to an plug into on in the average cost of student living accommodations in this sector as investors and landlords will see an probability for a profit and buy-to-l et. As the initial pick out to buy houses exceeds the bar of houses available to buy, the average price will increase as the owners try and sell for the best realistic price and this in turn will counter numeral the requirement for lodging as some investors may be deferred by the higher(prenominal) prices.

At original remainder P0 the step demanded is Q0 on the demand curve D0 and supply curve S0, as the industry changes from monopoliser to the private industry the demand to buy accommodation increases, and the demand curve shifts to D1, therefore creating a new equilibrium at P1 and Q1, now at the n ew price P1 the quantity demanded and suppli! ed is higher. The private housing industry will fork over many a(prenominal) smasheds so each firm will only have a small market share, however each firm in the industry will offer student housing which is secernate from its competitors E.g. En-suite bathrooms and double-beds. As the rivals compete with each other for the students rent the grapheme of the accommodation will improve in non-price competition, where some landlords will have better quality and...If you want to come out a full essay, order it on our website: OrderCustomPaper.com

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