Preview

Free Market Vs Monopoly

Satisfactory Essays
Open Document
Open Document
240 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Free Market Vs Monopoly
f you just happen to be the only company that produces a certain product then your monopoly of the market is ok. If you abuse your power as a corporation and conducted illegal business practices that is unfair to other competitors then your monopolistic practices are illegal.

If you are speaking of economic monopolies, then the answer is yes. It is illegal in the United States of America because it is a direct threat to the economic prosperity we enjoy today. We are as prosperous as we are because of the comparative freedom we have to share ideas and buy, sell and manufacture goods. When everyone is free to engage in commerce, quality is improved, prices are kept low, and money is worth more as a general rule. The free market is allowed
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Monopolies: The Sherman Antitrust Act
    • 73 Words
    • 1 Page

    Monopolies: The Sherman Antitrust Act

    A monopoly occurs when a company has such a large portion of the product market that it can set its own price despite the market equilibrium. Monopolies date back to Standard Oil Co. Inc. in 1870. Standard Oil Co. Inc. controlled also the entire oil market in its time and made huge profits by doing so. The Sherman Antitrust Act was put in place to combat monopolies and their power in the marketplace.…

    • 73 Words
    • 1 Page
    Satisfactory Essays
    Read More
  • Satisfactory Essays

    Difference Between Monopoly And Oligopoly
    • 348 Words
    • 2 Pages

    Difference Between Monopoly And Oligopoly

    Oligopoly is a market structure containing a small number of relatively large firms that often produce slightly differentiated output and with significant barriers to entry. Monopoly is a market structure containing a single firm that produces a good with no close substitutes and with significant barriers to entry. While it might seem as though the difference between oligopoly and monopoly is clear cut, such is not always the case.…

    • 348 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Egt1 Task 3
    • 729 Words
    • 3 Pages

    Egt1 Task 3

    A monopoly is the single supplier of a commodity. A natural monopoly such as public utilities where a single supplier of electricity is of economies of scale are regulated for rates preventing harm to society. Private monopolies are a violation of the antitrust acts/industrial regulation. Industrial…

    • 729 Words
    • 3 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Cross 9e TBB Ch27
    • 2502 Words
    • 13 Pages

    Cross 9e TBB Ch27

    A firm may be a monopolist even though it is not the sole seller in a market.…

    • 2502 Words
    • 13 Pages
    Satisfactory Essays
    Read More
  • Satisfactory Essays

    pineda
    • 253 Words
    • 2 Pages

    pineda

    * Monopoly: a market structure with just a single producer completely dominating the industry, leaving no room for any significant competitors. Example: monopolies can harm the economy most are illegal according to federal legislation.…

    • 253 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Satisfactory Essays

    Monopoly Break Ups
    • 623 Words
    • 3 Pages

    Monopoly Break Ups

    I do not feel that monopolies are really bad for society. One common argument suggesting they are bad is that they make extra profits. And while it is true that they make extra profit. A monopoly can be inefficient if it not able to perfectly price discriminate. If they can 't price discriminate, some consumer surplus will be lost without a gain to producer surplus because the producer can 't gain a surplus without selling. So, if…

    • 623 Words
    • 3 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Andrew Carnegie and Monopoly
    • 1102 Words
    • 5 Pages

    Andrew Carnegie and Monopoly

    A monopoly can be defined in many ways. According to the research that I have done, a monopoly in my own words is a company or a group that owns all or almost all of the market for only a given type of product or service. Absence of competition is what typically leads to the formation of a monopoly which results in high prices and subordinate products. The history of monopolies itself goes way back to the colonial times. Monopolies are great economic powers that have had positive consequences to the United States of America.…

    • 1102 Words
    • 5 Pages
    Good Essays
    Read More
  • Good Essays

    Research Paper_Week3 Essay Example
    • 849 Words
    • 3 Pages

    Research Paper_Week3 Essay Example

    Then there was the Sherman Antitrust Act which was had the capabilities of breaking up monopolies in order to restore free enterprise. Some monopolies bad due to the interest of the consumer and completion. The Act stated “outlaws all contracts, combinations, and conspiracies unreasonably restrain interstate and foreign trade.” The act also included agreements with competitors to rig bids and fix prices. (Federal Trade Commission, n.d.)…

    • 849 Words
    • 3 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Monopoly Vs Monopoly
    • 510 Words
    • 3 Pages

    Monopoly Vs Monopoly

    The dictionary states the definition of a monopoly as an, “Exclusive control of a commodity or service in a particular market, or a control that makes possible the manipulation of prices.” According to the…

    • 510 Words
    • 3 Pages
    Satisfactory Essays
    Read More
  • Better Essays

    The Anti-Trust Act
    • 1593 Words
    • 7 Pages

    The Anti-Trust Act

    A monopoly means, taking over an industry by creating trusts or agreements with other smaller companies to ensure the prosperity of their own business. A monopoly conviction requires proof of the individual having the “intent to monopolize with the power and ability to monopolize, regardless of whether the individual actually exercised the power” . Congress wants to make sure that no monopoly will ever take place so as long as the person has the ability to make a monopoly, congress wants to stop them . This is done in various ways. One is called predatory pricing . This is when a company drops their prices so low, making the choice clear for consumers to buy from them, which causes a competing business to be destroyed due to lack of costumers. Another way of controlling the market is by price fixing . Price fixing is when a company or companies set and maintain a rate of their goods at a certain standard. Try arrangements are also prohibited; this is an agreement between a buyer and a seller . The seller will only give the buyer his purchase on condition that the buyer must buy other products from the seller or not buy certain products from another seller. Even firms have regulations. A firm cannot refuse to help another firm for the purpose of controlling the market . Many of the times, companies are only in trouble if there is a ruling of reason scrutiny; which means, if it is proven that a…

    • 1593 Words
    • 7 Pages
    Better Essays
    Read More
  • Good Essays

    Pure Monopoly's: Eco 100 Survey Of Contemporary Economic Issues
    • 511 Words
    • 3 Pages

    Pure Monopoly's: Eco 100 Survey Of Contemporary Economic Issues

    Answer Question 1 from the study questions at the end of Chapter 8 in the text: "No firm is completely sheltered from rivals; all firms compete for consumer dollars. If that is so, then pure monopoly does not exist. Do you agree?" Fully explain your answer in a way that shows your understanding of “monopolies.”…

    • 511 Words
    • 3 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Pure Monopoly Research Paper
    • 635 Words
    • 3 Pages

    Pure Monopoly Research Paper

    If this is so, then pure monopoly does not exist? I personally believe that all firms do have to compete for consumer dollars but under the right circumstances, a monopolistic environment can exist. A “pure monopoly” is rare but they are a possibility. One example could be the story of the firm or company “Microsoft” and the circumstances surrounding their market dominance. According to the scholarly article titled Is Microsoft a Monopoly: An Empirical Test, author’s Saleheen Khan, Faridul Islam, and Syed M. Ahmed (2004) state, “As is known, the existence of a free and competitive market environment is the cornerstone of capitalism. A basic goal of the government antitrust regulation is to help create such an environment by discouraging, and if needed, by curbing monopoly” (para.1). The importance of “fair market practices” has been the major concern regarding the company Microsoft and its competitors. The article continues by explaining accusations have been made against Microsoft of the gain of “market power” through unfair “business practice’s” by using this power to “sabotage” its competition in other fields (Ahmed, Islam, and Khan, 2004). These “accusations” have led to further inquiry of whether the firm has created a “monopoly” within the market. This example has many variables that relate to the situation but ultimately the…

    • 635 Words
    • 3 Pages
    Satisfactory Essays
    Read More
  • Better Essays

    Ethical Evaluations
    • 852 Words
    • 4 Pages

    Ethical Evaluations

    The definition of a monopoly market is, "the only seller in the market is a single firm, and new sellers are barred from entering."…

    • 852 Words
    • 4 Pages
    Better Essays
    Read More
  • Good Essays

    Business: Monopoly and Market Entry
    • 995 Words
    • 4 Pages

    Business: Monopoly and Market Entry

    (3) Substitutes: Availability of substitute goods can limit price level P, so as to deter buyers from switching to substitute product or service.…

    • 995 Words
    • 4 Pages
    Good Essays
    Read More
  • Best Essays

    Oligopolies in the United States Economy
    • 1779 Words
    • 8 Pages

    Oligopolies in the United States Economy

    Oligopoly is defined as a market structure in which there are a few major firms dominating the market for a specific product or service.…

    • 1779 Words
    • 8 Pages
    Best Essays
    Read More

Related Topics