Meaning of Monopoly in Economics

Being a monopoly doesn’t help anybody

Mergers and acquisitions are signs that a particular company or a sector is growing. However, if a certain company grows into a giant which nobody can match then it may be self-defeating.

Earlier in the days when there were hardly any choices for cars in India, the people who bought vehicles were the ones who really needed them. Enter cars from all over the world and everybody wants to own a car.

Similarly, when you have a monopoly then the number of people buying that product is less unless it is a necessity. People don’t trust monopolies. Competition is good. Competition helps consumerism thrive. People trust competition. If your product is priced higher than your competition your consumers may rationalize the difference.

Welcome competition. Encourage competition.