Why do you think monopoly arises Find two real life examples

Why do you think monopoly arises? Find two real life examples from news

Solution

Monopolies can emerge in various ways, however the greatest concern is the thing that happens once they accomplish monopoly power.

A company can turn into a monopoly by being the principal producer of a good or service. Commonly, if that company is profitable, at that point different firms will participate. The monopoly, be that as it may, will do what it can to keep others out - there are legal and illegal approaches to do this. At last, it\'s better for the economy in general if different firms participate.

A company can turn into a monopoly by being the main company that is equipped for entering, and staying in, a high fixed-cost industry. Cases here are service organizations. Not anybody can begin giving broadband access to family units since it costs billions of dollars of infrastructure investment. These organizations are called regular monopolies

A company can turn into a monopoly through network impacts. In a champ take-all market, similar to some interpersonal organizations, prevailing players will emerge and win the vast majority of the market through the power of networks. For what reason would I join Myspace if everybody is on Facebook?