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Analytical Research Paper: Monopoly and the Society - Essay Example

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The paper will analyze monopoly as a microeconomic issue. The society today has been commercialized and people engage in varied activities for economic gains. Economics is a body of knowledge that involves a systematic study of production and consumption of goods and services. …
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Analytical Research Paper: Monopoly and the Society
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"Analytical Research Paper: Monopoly and the Society"

Download file to see previous pages We are in a business environment and globalization has even made business a more complex undertaking. This is because it has come about with the expansion of the global market due to technological advancements that has caused high interconnectivity. In the wake of international trade, there is immense global competition in the provision of goods and services. Different companies and organizations are required to compete fairly and within the legal framework provided. This development has threatened monopolies and most of them thrive mainly due to government regulations that cushion them. There are some very vital and basic commodities like water and electricity that cannot be left for several companies lest they exploit the consumers. In such a case monopoly becomes a vital tool by governments to ensure provision of quality and affordable goods and services to their citizens. ...
This is because it has come about with the expansion of the global market due to technological advancements that has caused high interconnectivity. In the wake of international trade, there is immense global competition in the provision of goods and services. Different companies and organizations are required to compete fairly and within the legal framework provided. This development has threatened monopolies and most of them thrive mainly due to government regulations that cushion them. There are some very vital and basic commodities like water and electricity that cannot be left for several companies lest they exploit the consumers. In such a case monopoly becomes a vital tool by governments to ensure provision of quality and affordable goods and services to their citizens. What are the benefits of monopoly to the society? Monopolies benefit from a sure market that enables them to develop their capital base. This will fuel such companies to realize wealth and profit maximization. As such, the companies will benefit from economies of scale that will result to reduced cost of production. Devon (2011) documents that reduced production cost is beneficial both to the companies and customers. When the cost of production is reduced, the cost of commodities will also reduce, and this is highly beneficial to the consumers. A reduction in prices increases their purchasing power, and this in turn promotes their social development and standards of living. Monopolies are beneficial to the particular companies since it increases their profits. When profits increase, such companies are able to invest heavily in the economy. This will spur the economic growth of a particular country or region where they exist. According ...Download file to see next pagesRead More
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