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Monopoly is a term used very often in economics. Monopoly refers to a single firm being the only provider/supplier of a particular product or service in a country. Since it is only one company which is responsible for selling a particular good or service, it is able to charge consumers high prices for that particular product. With there being no competition in the market against that particular monopoly, the firm is able to exploit consumers to a great extent and there is nothing which can be done.
The prices of goods in the market usually depend on the demand and supply factor. The more a good is in demand, the higher the price which suppliers will charge for it. If a company selling necessities is a monopoly, people will have no other option but to buy those goods at a higher price. This generally tends to go on until the government puts a stop to it; there isn’t any other option available. The existence of monopolies is not very healthy for an economy of any country as there isn’t proper business taking place.
There are many economists who believe that the market should not be monopolized and the running of the industries should be left in the hands of the government of each country. This can certainly be beneficial to the public to a certain extent. This will allow everyone access to all goods in the market at a lower price and no consumer will be exploited. However, if all industries are run in this way, there are going to be no profits earned by the government and no money available for the country to run. Resources will be used up continuously and there will not be any return coming in place of these resources. This would turn out to be a disaster as the government would tend to be short of resources and would not be able to meet the demands of the consumers.
Due to this purpose, some economists, however, do believe that the existence of certain monopolies is very much required and that….
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