Two main reasons: 1. There are greater profits to be gained by being a monopoly, either in the form of lower costs (economies of scale) or higher revenues (since all the industry demand is supplied by one company). 2. Less uncertainty. You don't have to worry about competition.
Eliminated competition
If one company were to become a monopoly then consumers would not have a choice as to who to give their money to. Consumer choice and competition are cornerstones of capitalist economies, and to preserve them we must put measures into place that prevent the rise of monopolies.
operating characteristics
Monopolies are regulated to protect consumers. An unregulated monopoly can charge prices higher than the efficient level of production which causes some consumers to be left out of the market. Governments can combat this by breaking up monopolies with antitrust laws and turning monopolies into public entities.
The monopolies commission, or to give it its' full title "The Monopolies and Mergers Commission" exists to prevent monopolies and mergers of companies that may be against the public interest.If 2 such commissions were in existence at the same moment in time then they could merge.So by virtue of remaining a solitary public institution the monopolies commission is fulfilling its' role by preventing a future merger that may be contrary to the public interest.
When private firms gain monopoly power, usually because of economies of scale, they are in a position to restrict production and raise price with little worry of competition; these are known as natural monopolies.
Describe the events of the 1902 coal strike
Monopolies are not the most common market structure, if they were you would not have the large variety of potato chips, drinks, etc.Instead "monopolistic" markets are arguably the most common form. In this market structure there are many firms who sell similar products (but not the same).
If you have a monopoly, why would you want an oligopoly? You make more profit alone.
Oligopolies involve more than one company while monopolies involve only one. apex :]p
It has been argued that privatisation has not led to greater competision, as for postal servises they are public monopolies with no competision to become private monopolies. these companies will be able to exploit their positions in the country.
Shared or Joint monopoly refers to anticompetitive behaviour by firms, normally an oligopoly, in order to secure monopoly profits for the firms as a group. Essentially, shared monopoly requires some form of collusion but stops short of being a formal cartel. It is therefore similar to tacit collusion. In a shared monopoly firms may not compete for the same customers and have instead local monopolies.
from the household, the income flow which is the purchase of goods and services will become firms. then the income flow from the firms which is the wages, interest and rents will go back to the households.
Eliminated competition
monopolies were bad
natural, geographic, technological, government
If one company were to become a monopoly then consumers would not have a choice as to who to give their money to. Consumer choice and competition are cornerstones of capitalist economies, and to preserve them we must put measures into place that prevent the rise of monopolies.