Monopolies Essay

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Monopolies Introduction to Business Fairmont State University Prepared by Student Prepared for Donna J. Stumpo, M.B.A December 3, 2007 When many people hear the word monopoly they think of the common board game that tons of people have played threw out there lifetime, but it is far more than just that. A Monopoly is defined by Webster’s dictionary as being a persistent situation where there is only one provider of a product or service in a particular market. It can also be defined as a individual or firm that can explicitly force competitors out of business by slashing prices, buying up and hoarding supplies, bribery or intimidation. One of the most recent cases of monopolies would be the Microsoft strangle that it had in America. The strangle was so strong that no other company could even try to compete against it. A monopoly like this can set prices high because it has no strong competitors out there. It can also limit supplies of a good or service it has to create scarceness in a particular market in turn driving prices to what ever they want. Many people would think that breaking up Microsoft would send the wrong signal to individuals and businesses in America. If a company makes such a good product should it be punished for doing so? Dividing the company into a couple other companies would make Microsoft fight for its position among other software companies. If such a dramatic change where to happen Microsoft would have to improve its software and lower prices. Another strong example is a utility company using a monopoly which is the American Telephone and Telegraph Company also known as (AT&T). AT &T in the early 20th century had a stronghold on the telephone services in America. The government actually protected AT & T for the determination they had to make telephone service so readily available in America.

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