What happens during a monopoly?

Answer 1

Depends.

In a town of 100, the local store owner is a "monopoly", but no one minds, as it's obvious that the town can't support two stores.

Then there's the Post Office, but that's the government, so monopoly laws are waived.

Then there's various religious organizations. The Catholic Church has a monopoly on who gets to be a Catholic. Of course, every other religious organization has a monopoly on who gets to call themselves a member, so no one minds. (On occassion, some do mind, which is why you see some churches called "reformed" or "restored".)

Then there's corporations that dominate their field, such that there is no meaningful competition. However, it is sometimes the case that they are just so darned good at it that no one complains, because there actually isn't anyone who could do it better or cheaper anyway. Eventually someone always complains, though.

Then, when someone complains, oft times because the originally "good" monopoly company got a bit out of hand, then the government will file an "anti-trust" suit against them. It can be settled with a voluntary correction, or in extreme cases a mandated break up can occur.

Answer 2

It happens when a group or company has exclusive control over an activity and other companies enter the market to fight for that control. It is the process by which control is determined in a competitive market situation where competition strives for puremonopoly.

Answer 3

By definition, a monopoly is when one company controls a large portion of or the entire market for one product, therefore making it basically impossible for consumers to buy from any other company. This company can now charge a higher price for its product because consumers are forced to buy from the company. A monopoly can force other companies out of business and hurts the economy. An example would be the AT&T Monopoly, which began in the early 1900's.

Answer 4

Usually during a monopoly is where a business tries to "own" the whole street. In other words it means one business is trying to eliminate the others causing consumers to purchase their products since the other stores are no long there.

Answer 5

An oligopoly is an industry that consists of relatively few firms. Generally they collude to produce the highest profits. An example of this is OPEC, the oil oligopoly in the Middle East. They work together to influence prices and create a maximum joint profit.

Answer 6

They have exclusive control of a commodity or a service in a particular market making it possible to manipulate prices