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Monopolio

Monopolio (Spanish and Portuguese) refers to the exclusive control of a commodity or service in a particular market, or a control that makes possible the manipulation of prices. It encompasses situations where a single entity (a company or government) dominates the supply, limiting competition and often enabling the setting of prices at artificially inflated levels. A monopolio arises due to factors like unique resources, government regulations (e.g., patents or licenses), or significant economies of scale. It can stifle innovation, reduce consumer choice, and can sometimes be detrimental to the overall economy. Anti-monopoly regulations are often implemented to encourage competition and protect consumer interests.

Monopolio meaning with examples

  • The government's granting of a 'monopolio' on telecommunications to a single firm initially aimed to improve infrastructure. However, the lack of competition led to slow innovation and high prices for consumers. This situation highlights the potential downsides of a 'monopolio' by restricting the consumers freedom and causing market stagnation. The intended positive of infrastructure advancements was diminished by the overall harm brought by the lack of market competitiveness.
  • The historical 'monopolio' of the East India Company over the spice trade allowed it to amass significant wealth and political power. By controlling the supply of valuable goods like pepper and cloves, the company dictated prices in European markets. This 'monopolio' became a symbol of colonial exploitation and unfair trade practices. The control of such goods brought immense power to the company allowing the company to dictate prices and trade.
  • In the hypothetical case of a new, life-saving drug, the pharmaceutical company with the patent could establish a 'monopolio'. If no alternatives exist, they could set prices at a level that many patients would be unable to afford. This exploitation underscores the importance of regulating 'monopolio' in vital sectors to balance corporate profitability with societal well-being. If such controls are not put in place the business can become a detriment.
  • Even with the development of the internet the dominance of some online retailers can be viewed by some as a modern type of 'monopolio'. Their control of data and large-scale operations allows them to squeeze smaller competitors. Antitrust cases are on the rise because of this. Some view these types of large businesses as creating a type of contemporary 'monopolio', and are trying to work out laws.
  • Antitrust laws are constantly reviewed in order to curb this type of activity.

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