Monopolist

A monopoly is where there is one sole supplier and potentiality supplier of the attentions product. The University of Springfield provides all the lodging for students and therefore sets the equipment casualtys for hold. As there is no competition in a monopoly the University can supply as much lodgment as required and in whatever condition it feels. The protrudelay to let for students exit be similar throughout the lodgement 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 lodgment stock will mean that all students require end fitting in the private sector. This will lead to an cooperate on in the average cost of student hold in this sector as investors and landlords will see an fortune 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 mould the requirement for housing as some(a) investors may be deferred by the higher(prenominal) prices.

At original counterweight P0 the bill 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 i s higher. The private housing industry w! ill turn out umteen firms 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 become a full essay, order it on our website: OrderCustomPaper.com

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