Monopoly

A monopoly is exclusive control over a particular commodity or service in a given market. This control allows the monopolist to dictate prices and limit competition, potentially leading to higher prices and reduced consumer choice. It can arise through various means, including government grants, control of essential resources, or through mergers and acquisitions that eliminate rivals. The extent of a monopoly's power depends on factors such as the availability of substitutes and the elasticity of demand.

Monopoly meaning with examples

• Standard Oil's aggressive tactics in the late 19th century created a near-monopoly on the oil industry, allowing them to control production and distribution. They faced antitrust lawsuits and eventual breakup. This highlighted the dangers of unchecked corporate power. These actions, in turn, changed the nature of the US economy for good.
• The government granted the East India Company a trade monopoly over several centuries with a monopoly over trade. This allowed them to exploit resources and establish colonial dominance. This monopoly profoundly impacted both Britain and the countries they had trade and political control over, changing social structures.
• Microsoft held a near-monopoly on operating systems in the 1990s, giving them significant influence over software development and consumer technology adoption. This resulted in some legal scrutiny, but it also helped them innovate their software at a faster rate. Microsoft benefited greatly during this period, even facing intense pressure.
• A pharmaceutical company's patent on a life-saving drug creates a temporary monopoly, allowing them to recoup research and development costs, but often leading to high drug prices. This creates a difficult situation for those in need as costs will naturally be higher. Many would like to see lower costs.