Monopoly Case

Monopoly is a word that is usually used by economists and business people. This word is derived from the Greek words which are monas meaning “One”, and polein meaning “To sell”. Monopoly means that when only a single company is providing a product or service to the customers and there are no substitute companies. So for customers a monopoly is not advantageous because consumers have only one choice. It is the companies choice whether they want to lower the price or higher it. Monopolists have the probability to charge considerably different costs to different consumers for the same good or service. Monopolies can be graded in several ways, the monopoly’s cause, the structure of the monopoly, and the monopoly’s degree of power.

Monopoly can be ineffective in various ways. Enormous monopolies have the huge chance to damage the economies and the democratic governments. By having a higher price of good or service that does not reach its quality can harm an economy. The negative effect of a monopoly is that the companies control the price, it is their power of choice to higher the price considerably. Consumers have a less choice of a product or service. Monopolists hire fewer employees than other competitive markets, so the unemployment appears and it is not useful for the country’s development.

The negative effect of a monopoly is that the companies control the price, it is their power of choice to higher the price considerably. Consumers have a less choice of a product or service. Monopolists hire fewer employees than other competitive markets, so the unemployment appears and it is not useful for the country’s development.