One of the most dramatic episodes in the history of the United States economy would be that of the Standard Oil Monopoly which occurred when the country was transitioning from a mainly agricultural society to becoming an industrial capital. John D. Rockefeller, an American…
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Rockefeller (American industrialist)-Britannica Online Encyclopedia." Encyclopedia - Britannica Online Encyclopedia, n.d). Originally, this Trust was made to bring cash in through the conversion from whale oil to kerosene. However, with the emergence of the automobile use, gasoline was the by-product that brought immense wealth to this industrial group. By 1890, the Standard Oil already controlled almost 90 percent of America’s oil industry with little competition remaining. Rockefeller took this opportunity to set prices arbitrarily, leaving consumers with no choice but to pay for the set price (The Standard Oil monopoly, by the Linux Information Project." The Linux Information Project (LINFO) Home Page, n.d).
Aside from the dreary effects that consumers had to live with, this went on too far as it did not only had many people’s businesses or jobs taken away from them because of the elimination of competition and the ruthless predatory tactics of the trusts but at the same time it was a business that used extensive fraud, political corruption, and physical violence to maintain its monopoly (A History Of U.S. Monopolies." Investopedia – The Web’s Largest Investing Resource, n.d). Thus, the U.S Department of Justice took on several efforts to break the monopoly. Some of which
would be the enactment of the Sherman Anti-Trust Act that sought to limit monopolies and cartels. This act gave the government the power to shatter big companies into smaller pieces that would benefit not only one company or a group of people but the general public. However, this act only gave birth to the formation of domestic monopolies and was then used to differentiate between good and bad monopolies as seen by the government. In response to this, the Clayton Act was introduced that served as guidelines to whether mergers and acquisitions that were unavoidable should be allowed if they substantially lessened the competition in the market monopoly (A History
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The conclusion from this study states that it is true that every business exists to seek profit. But companies must not try to maximize their profits at the expense of other health. Consumers expect too much from the drug industry. The government of every country must take serious steps to introduce a proper code of conduct for drug companies.
The existence of monopolies in the economy presents challenges in the delivery of services, due to the inefficiencies associated with their existence. On this platform, laws geared towards the elimination of competition in most countries are illegal, but the existence of statutory monopolies challenges this perspective.
The market structure is a direct opposite of perfect competition because there are barriers to entry in form of legal restrictions, patents, regulations, tariffs, technical prowess etc. Other unique characteristics of a monopoly are its huge capital outlay and the existence of economies of scale, savings brought about by increases in quantities produced.
Though there may be other operating systems available, non are comparable to the system that consumers have become dependent on. The ability of Microsoft to dictate not only price, but also the products that are introduced, indeed make it a monopoly.
Other manufacturers have attempted to enter into competition with Microsoft by the introduction of competing operating systems and may have success on the edges of the market.
Generally viewed as having a negative impact on consumers, there are cases when a monopoly can be more efficient. Everyday we deal with monopolies that we may not recognize. Building a monopoly takes years and the effects of predatory practices may not be apparent for a considerable length of time.
The main issue in the case was whether Microsoft was allowed to bundle Internet Explorer web browser software with its Microsoft Windows operating system. This led to the browsers wars since all windows users had a copy of internet explorer this
This has left one wonder whether the electric industry is too complex for competition to work. Nonetheless, one can argue that the industry is not as complex as it may seem. Many of the monopolies are controllable since they are caused by the existing
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