The Monopoly Chain
December 9, 2011
In the game Monopoly, the game is definitely over when one player owns all the properties. You might say the game of free enterprise is over when a market is in a monopolistic condition.
What happens in a monopolistic market?
The price of a good is not set at market demand, rather it is controlled by the supplier in order to boost the ultimate price over market demand levels. In this environment, wealth trickles up on a one way path, a MONOPOLY CHAIN which ends up in the pockets of a very few people. There are no opportunities to compete unless you create your own market or go into a monopolized market and shake it loose somehow.
What happens when monopolies are broken up?
More jobs are created. More people are participating in the industry of a given market in a competitive environment. Quality of product goes up and consumers get a wider array of options.
Monopolistic conditions may occur also in markets with just a few producers who can collude on price levels. Trusts and collusions to artificially affect pricing must always be viewed with the greatest scorn by progressives.
- Monopoly Market (bhanusigdel.wordpress.com)