Choose one company on your own which can reflect monopoly or monopolistic market structure. Based on the chosen company explain how you can relate the features of your company with the characteristics of monopoly or monopolistic market.

Assume you are the manager of your chosen company. In a production process you produce a large volume of quantity of production as required by the customers. This is a good sign for you as you can obtain high profit from your production. However, along with your production process your factory also contributes to the contamination to the environment. You receive complaints from the societies as the contamination has reduced their quality of water and spread the toxic chemicals which then affecting their health conditions.

As a responsible manufacturer you realize that this action will give negative impact to your company reputation in a future. Advance technology will help you to prevent the wastage from pollute the environment, but you need to bear additional cost in your production. From another side, by just letting the contamination to pollute the environment, you might get fine from the government.

Based on the situation given, will you agree or disagree to use the advance technology in order to reduce the contamination in your production? Explain your answer in terms of market equilibrium and optimum equilibrium concept. What are the policies can be taken by government to reduce the potential contamination? Provide explanation with examples.