OL "Activity" on Monopoly & Oligopoly Markets

1-Identify and explain TWO main unethical practices of Monopolistic market

 Violates capitalist justice

Monopolistic market and their high profit and prices violates capitalist justice because the
seller charges more for product without considering the product’s worth. Hence the prices
the buyer must pay are unjust.

 Violates negative rights

Monopolistic market forcing other companies to stay out of the market. This situation
leads to the monopolist to take advantage and forces buyers to purchase goods and
products they do not want and prefer. This situation also enable the monopolist to be the
price maker and quantity decisions that affect and force the consumer and buyer to accept
it unwillingly.

2-Identify and explain TWO main unethical practices of Oligopolistic market.

 Price- Fixing
Price fixing happen when there are small number of firms in a particular market. This
limited number of businesses offer the same product and form an agreement to set the
price level. Prices may be forcibly lowered to drive out smaller competitors or may have
an inflated level to support the interest of the group at a disadvantage to the buyer.
Overall, price fixing can eliminate or reduce competition while also leading to even
higher barriers for new entrants.

 Manipulation of supply
Manipulation of supply occur when firms in an oligopoly industry agree to limit their
production so that prices rise to levels higher than those that would result from free
competition.