Examples Of Monopolies

Monopolies in America during the late nineteenth century held various effects on the nation’s economy. They increased the amount of jobs for the struggling, provided necessary capital, and introduced new inventions that are still used today. On the other hand, monopolies continued the spread of corruption in enterprise. The creation of monopolies brought forth multiple benefits for the country. Rockefeller stated that with monopolies came expansion of business.

425 A monopoly is the total control of a type of industry by one person or one company. What is a holding company? Pg.426 A holding company is a company whose primary business is owning a controlling share of stock in other companies.

Tanner’s epitaph describes the hardship of the working class. Corporations that had exclusive possession or control of the supply or trade in a commodity or service, otherwise known as monopolies, had completely taken over the market within America. This in turn caused a lack of competition, which only allowed the monopolies to grow bigger. John D. Rockefeller is a prime example of this. For decades rural Americans were aware of the vast petroleum deposits oozing up across the countryside, but it was not until 1859 that an effective means of extraction came along with inception of drilling.

During America's Progressive Era, large monopolies controlled the industries in which they did business, increasing the economy and harming the people. Monopolies were a big thing during the progressive era. A monopoly is when one person or business owns a product that they can only sell and produce. For example, a big industry like oil used to be owned by the Rockefellers, and they were the only ones who could sell oil in America. According to the Newsela article "Entrepreneurs: John D. Rockefeller," "Standard Oil continued to spread."

I have discovered local politics have the most impact on our lives and the rules by which we live. This year the state of Ohio has come up with two issues. They are Issue 2 and Issue 3. The purpose of Issue 2 as stated by the Ohio government’s website is, “to prohibit any individual or entity from proposing a constitutional amendment that would grant a monopoly, oligopoly, or cartel, specify or determine a tax rate, or confer a commercial interest, right, or license that is not available to similarly situated people or nonpublic agencies.” Along with that matter, as stated by the Ohio government’s website, “Issue 3 legalizes marijuana for medicinal and personal use in Ohio.

During the Progressive Era there were multiple of changes occurring that people became overwhelmed. New resources in the oil market, industrialization, fights for equality. There were many factory jobs, however, no one to stand up for the workers. So of course people will turn to their government for help, the power house of the country. However, even the government was picky in what they helped with.

The Gilded Age was a time of good and bad economic growth. In America during post civil war times, years 1870 to 1900, the nation was prospering on the surface, but was corrupt underneath; large businesses took control of the economy, changed society, and influenced politics nefariously. By the end of the nineteenth century, monopolies and trusts exercised a significant degree of control over key aspects of the American economy. Carnegie used vertical integration to take over the steel industry. He then set up a mega trust with Rockefeller, who was in the gas and oil industry, JP Morgan, who was a banker, and Vanderbilt, who was high up in the railroad industry.

Market Structure - Oligopoly Oligopoly is a market structure whereby a few number of firms owns a lion’s share in the market. This market structure is similar to monopoly, except that instead of one firm, two or more firms have control in the market. In an oligopoly, there are no upper limits to the number of firms, but the number must be nadir enough that the operations of one firm remarkably influence and affects the others (Investopedia, 2003). The Walt Disney Company is categorized under an oligopoly market structure.

In the past decade, The Walt Disney Corporation has dominated the entertainment industry and has purchased popular and recognizable properties in the entertainment business (“Mouse-Opoly”). Disney has a great understanding of what the audience wants before they even dream of it themselves. However, with Disney’s recent purchases consumers have become concerned that Disney is monopolizing the entertainment industry. Before continuing it is important understand the definition of monopoly that I am using to make my claim. According to Merriam-Webster, a monopoly is corporation that has “complete control of the entire supply of goods or services in a certain area of market” (“Mouse-Opoly”).

The freedoms that are hindered by these entities are the freedom to enter or not enter into a particular transaction by denying them any alternative and the freedom to not be affected by transactions in which you do not partake (Friedman, 1975). A monopoly deprives the consumer of the freedom of exchange; the consumer is forced to transact with a sole seller. Monopolies themselves come in different forms and deciding which monopoly will do less harm to the people, the monopolies need to be studied on a case-by-case basis. Most monopolies can be dealt with anti-trust laws to prevent them from coming to existence. Furthermore some monopolies need the government to stop supporting them in order to terminate its existence.

In conclusion, it can be said that firms operating under monopolistic competition have distinct features which separates it from other market structures such as perfect competition and oligopoly, some of which are many sellers offering differentiated products to consumers, whereby, the firms have power, to a certain extent, to influence their prices and there are low barriers to entry and exit. A good example of a monopolistically competitive market is the retail clothing market in Australia which is illustrated and discussed in detail above. The behavior of the clothing stores, in terms of their extensive advertising, customer service and other forms of differentiation will assist the stores to survive in a highly competitive market.

International trade is also knows as a globe trade which give the country opportunity to expands their markets for both good and services that otherwise may not have been available in other countries. This type of trade also give advantages for world to rise the economy in term of prices, supply and customer demands, affect and are affected by global events. All of the good and services can be found on international market. International trade will involve two types of process which be export and import. Export is a function of international trade in which the goods produced in a country will be sent to another country for future sale or trade.

The oligopoly market is set up in a way so that competitors can survive because each is unique and there are so few competitors that they are virtually indispensable even if some ethics atrocity

The companies in today industry serve a huge competitiveness. Current competitors take advantage of the demands from consumers to earn high profit margins. Fendi is known as a rich brand heritage and is the first global group in luxury product. They are widely recognized for its leathers, furs, watches and bags.

This market usually exists when there is only one firm in the sector/industry. A monopoly usually has no close substitutes. For example: a local electricity company, or a railway service in a city. In order for these firms to be able to maintain their monopoly