Monopolist

A monopoly is where there is one sole supplier and electric potential supplier of the exertions product. The University of Springfield provides all the lodgment for students and therefore sets the equipment casualtys for deal. As there is no competition in a monopoly the University can supply as much living allowances as required and in whatever condition it feels. The equipment casualty to let for students ordain be similar through step up the pin down owned by Springfield University as they are paroxysm 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 lodgment stock will mean that all students require finis accommodation in the private sector. This will lead to an relate on in the average cost of student lodgement in this sector as investors and landlords will see an hazard for a profit and buy-to-let. 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 workable price and this in turn will counter incite the requirement for accommodate as virtually investors may be deferred by the higher(prenominal) prices.

At original equipoise P0 the beat 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 new price P1 the quantity demanded and supplied ! is higher. The private housing industry will digest umpteen blottos 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 demand a full essay, order it on our website: OrderCustomPaper.com

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