Monopoly †economics Essay

A monopoly exists when it has total control everywhere a position market and controls the affix and demand for that particular right-hand(a) or service. An oligopoly is a structure of a market in which only a a some(prenominal) companies own or control the industry There are subjective monopolies in the economy as well which are necessary to march on the economy progressing. Oligopolies exist because of the control over the supply of a good or service is in the hands of only a recognize few. They can influence the prices as well as the competition. The first monopolies began over discrepancies over infixed resources.Before there was government regulation the resources that were one time widely available to the population were controlled by the likes of elite, rich men. These conflicts over natural resources caused the government to regulate the resources by gathering and distributing them to the public. This regulation was put into station to reduce aggression between the company and the customers while balancing the supply and demand through different companies. Natural monopolies, on the other hand, do exist. These natural monopolies are those that have been in place for a presbyopic time and cannot be easily replaced.An example of these monopolies is a public avail such as water or electric service. It is much much costly to use multiple companies for a utility is much more(prenominal) costly as a whole than allowing the monopoly to continue. Waterlines and electrical towers that have been construct and maintained for years would be difficult to destroy or shoot from the land. In an oligopoly market, the companies learn the prices and work together to control the markets to block brand- impudent competitors from entering the market. The way these companies compete is through advertising and campaigns to get the closely loyalty from the public.By using one another they can piddle supply and demand for their product or service. With gover nment regulation these few powers can also be controlled like a monopoly would be. From a laissez faire view, monopolies and oligopolies result self-correct and be naturally eliminated. For instance, Microsoft Corporation controlled the operating system market since release in 1985. Microsofts operating systems, which once solely dominated the market, instantly compete with Apples MacOS. These two companies competing have now form an oligopolistic market.In conclusion, it is in the best interest in the government to clog monopolies from existing. When monopolies exist they decrease the incentive to for other companies to be successful in the market. Keeping the market competitive will drive companies to create new technology and use their inventiveness to improve the economy. Only under real circumstances should a monopoly exist and that is of a natural monopoly, and when they do they ought to be regulated by the government. Even though the government can set laws and regulatio ns for oligopolies, it still leaves plenty of room for monopolistic activities and uneven market share.