#Monopoly examples free

In the horizontal integration technique, company X keeps on buying the other companies that manufacture the same product until no other competitors are left in the market. In the vertical integration strategy, only one company say company X controls more than one stage of the manufacturing and distributorship of the particular product, hence control over the entire supply chain of that product, which eventually gives the monopoly power to the company X. The company hold the monopoly in the market primarily by using two strategies, i.e., vertical integration and horizontal integration. Monopoly can lead to a burden on the customers due to high product prices, cheap quality products, and other unfair business practices used by the companies that hold monopolies.

#Monopoly examples free

Monopolies are bad in the free market as it leads to the accumulation of most of the power, and wealth to one or a few major companies rather than nearly equal distributorship of wealth and power among the various companies.

Due to monopoly, the customers depend only on one company for any specific product or service as there is no other company, which provides that product or service at that price range or quality. Monopoly refers to the dominance of a particular sector or industry by a single company. In this article, we will learn about the monopoly and some famous real-life monopoly examples. Well, you were forced to pay double the original amount of the drug due to the monopoly. Now, what would you do? More probably you will buy that product as you need it urgently for your father and that drug is not available in any other nearby medical store. You ask him to give you the drug at its original price but the supplier is not ready to give you the drug at that price as he/she knows that this particular drug is not available in any other nearby store. Shockingly, the supplier is asking you to pay double the amount of the original price of the drug. You went to that medical store and ask for the drug.

After hours of searching, you find that only one medical store in your city has that drug. You urgently need the drug, but that drug is not available in any of the nearby medical stores. The doctor tells you that only one drug may cure your father and it is needed as early as possible. Imagine a scenario, your father is sick and no drug or treatment is improving his condition.