Pros And Cons Of A Monopoly

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A monopoly is characterized when a single supplier in the entire market own a specific product, so that from that specific product, or products, they own the entire market share. A monopoly is also defined when a company own 25% of that market, meaning they have a huge part of the market share. There are many reasons why a monopoly may form for a specific product. One of the reasons is when a company has the ownership of a specific requirement for one specific product, and example is how Apple owns the IO Software. Microsoft owning the Windows software, so in that are they are monopolizing that market, with those specific software. Another example of a patent monopoly is medicine, when a person or company own a patent, they can produce it…show more content…
And finally, the last reason why a monopoly may form is when companies merge with each other, by doing that it reduces competition and they may be actually able to own the 25% of the market with will mark them down as a monopoly. A monopoly could be bad for the public, since, when a company owns most of the market share or a big portion of it, it means that they could set any price that they want, but the government has a regulation for that called a ceiling price and a floor price, meaning that the prices in your company have to be inside that margin of total cost for the products that are being monopolized. Now, all the monopolies are not terribly bad, in cases that the company uses non-renewable products, or they use natural products. That means that if there are less people manufacturing products with these inputs, then there will less usage of them, and less loss of natural and non-renewable products such as petroleum or paper. Now, of course there are going to be advantages to having a monopoly, as long as you own it, with reasons such

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