Virtonomics Episode 5

MY COMPANY

Have you ever heard about the SUPER DEAL ? Well , in this game , this type of deal is actually possible . As I told you in the last episode , about where and how to sell products , the super deal is a boom in your company . This is an example of super deal :

Nobody is selling this car ! If you manage to buy it with a cheap price , then you're very lucky . You need to be carefull , because the market share includes only 14 pieces ! That means that every game week , only 14 pieces will be sold . 

This type of market is called "MONOPOLY MARKET" . 

The business website "Economics Online" writes about this key characteristics of the monopoly market . This will make you understand the meaning of such a market .

                          Characteristics

1. " Monopolies can maintain super-normal profits in the long run. As with all firms, profits are maximised when MC = MR. In general, the level of profit depends upon the degree of competition in the market, which for a pure monopoly is zero. At profit maximisation , MC = MR, and output is Q and price P. Given that price (AR) is above ATC at Q, super-normal profits are possible (area PABC).

2. With no close substitutes, the monopolist can derive super-normal profits, area PABC.
3. A monopolist with no substitutes would be able to derive the greatest monopoly power. "

  Read more about this : ( http://www.economicsonline.co.uk/Business_economics/Monopoly.html ) .