![]() ![]() Rockefeller's Standard Oil Company, and the American Tobacco Company.” “To date, the most famous United States monopolies, known largely for their historical significance, are Andrew Carnegie's Steel Company (now U.S. These economists also have other reasons as to why monopolies are unwanted which centers around them being inefficient and unable to engage in proper economic calculation rather than them “price gouging.” Within America there have been many examples of monopolies. In opposition to popular belief, free market economists argue that monopolies are actually caused by government intervention, and within a free market, monopolies would cease to exist. ![]() This means that because they are the sole distributor of a commodity, they can dramatically raise prices without any consequence because they have no competitors to undercut them. The reason there is a general distaste for monopolies is because of the idea that they engage in tactics like price gouging. It is widely believed that monopolies arise as a result of freer markets and a lack of government intervention. Colloquially it is used to describe a company with a large market share that faces minimal amounts of competition such as Amazon or Walmart. A true monopoly can be categorized as having “exclusive possession or control” and is typically used in the context of corporations and markets.
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