Monopoly and Perfect Competition - Essay Example

Client’s 4 March Cell Phones companies have started expanding at a very rapid pace and one can see cell phone towers almost everywhere, this has had positive effects as well as negative effects. In some areas there is no monopoly which means one is free to choose the best service provider out of a group of players but there are certain areas where monopoly still exists and customers have to settle for it because they really do not have a choice. The area in which I reside there is complete monopoly, although there are many cell phone towers but only one works in my area and I really have no other choice but to stick with it because there is simply no other option available to me.

There are many better services but those services remain unavailable and there is no news as to when these services will be made available in my area, the current service provider knows how to exploit customers, the current service provider charges a really high rate for sending text messages whereas the same service is offered free of charge by other players but they remain unavailable and this is what monopoly means and players who know that they have monopoly tend to exploit their clients because they are well aware of the fact that the clients have nowhere to go and they will have to stick with the existing service, certain services have become part and parcel of our lives, cell phones for instance have become an integral part of our lives and the same weakness of ours is being exploited.