Public Policy Toward Monopoly - Essay Example

Monopoly The economy is made up of many and different sectors. All the sectors therein make significant contribution in the growth and development of an economy. Essentially, economic productivity is measured relative to the performance of all its components. In the markets and industries within which economic sectors are based, firms operate within different market structures. Among them is a monopoly-structured market. A monopoly exhibits market power, thus acting as a price maker and the consumer as a price taker (Stigler, 2008).

The monopoly dominates the market within which it operates, an aspect associated with noncompetition in the market. Monopolies do not always have their way in operating within the public and/or private domain. Governments often intervene and control monopoly pricing in order to minimize consumer exploitation. The subject of monopoly is essentially related to economics. The government is a vital pillar of economics within and across a country. Government intervention in monopoly operations is relative to economic issues or concerns that the government seeks to address.

On the same note, a monopoly influences aggregate production and consumption in the private and public domain (Stigler, 2008). Most importantly, monopoly operations affect societal welfare in one way or another. These aspects directly link the topic of monopoly to economics, especially through public policy.Works CitedStigler, George. “Monopoly”. Library of Economics and Liberty, 2008. http://www.econlib.org/library/Enc/Monopoly.html