Pure Monopoly Research Paper
Do Pure Monopolies Exist?
ECO 100: Survey of Contemporary Economic Issues
May 26, 2014 Do Pure Monopolies Exist? The topic of conversation in regards to monopolies and their existence is the objective of this paper. In order to come to any real conclusion on the topic, we must first come to understand the true meaning of the word “monopoly.” This paper will also examine if “pure monopoly” can even actually exist considering no firm is completely sheltered from rivals and all firms compete for consumer dollars. I will begin this discussion by simply and briefly examining the definition of the phrase “pure monopoly.” According to the course textbook titled Essentials of Economics, authors S.L. Brue & C.R. McConnell (2010) state, “Pure …show more content…
If this is so, then pure monopoly does not exist? I personally believe that all firms do have to compete for consumer dollars but under the right circumstances, a monopolistic environment can exist. A “pure monopoly” is rare but they are a possibility. One example could be the story of the firm or company “Microsoft” and the circumstances surrounding their market dominance. According to the scholarly article titled Is Microsoft a Monopoly: An Empirical Test, author’s Saleheen Khan, Faridul Islam, and Syed M. Ahmed (2004) state, “As is known, the existence of a free and competitive market environment is the cornerstone of capitalism. A basic goal of the government antitrust regulation is to help create such an environment by discouraging, and if needed, by curbing monopoly” (para.1). The importance of “fair market practices” has been the major concern regarding the company Microsoft and its competitors. The article continues by explaining accusations have been made against Microsoft of the gain of “market power” through unfair “business practice’s” by using this power to “sabotage” its competition in other fields (Ahmed, Islam, and Khan, 2004). These “accusations” have led to further inquiry of whether the firm has created a “monopoly” within the market. This example has many variables that relate to the situation but ultimately the
ECO 100: Survey of Contemporary Economic Issues
May 26, 2014 Do Pure Monopolies Exist? The topic of conversation in regards to monopolies and their existence is the objective of this paper. In order to come to any real conclusion on the topic, we must first come to understand the true meaning of the word “monopoly.” This paper will also examine if “pure monopoly” can even actually exist considering no firm is completely sheltered from rivals and all firms compete for consumer dollars. I will begin this discussion by simply and briefly examining the definition of the phrase “pure monopoly.” According to the course textbook titled Essentials of Economics, authors S.L. Brue & C.R. McConnell (2010) state, “Pure …show more content…
If this is so, then pure monopoly does not exist? I personally believe that all firms do have to compete for consumer dollars but under the right circumstances, a monopolistic environment can exist. A “pure monopoly” is rare but they are a possibility. One example could be the story of the firm or company “Microsoft” and the circumstances surrounding their market dominance. According to the scholarly article titled Is Microsoft a Monopoly: An Empirical Test, author’s Saleheen Khan, Faridul Islam, and Syed M. Ahmed (2004) state, “As is known, the existence of a free and competitive market environment is the cornerstone of capitalism. A basic goal of the government antitrust regulation is to help create such an environment by discouraging, and if needed, by curbing monopoly” (para.1). The importance of “fair market practices” has been the major concern regarding the company Microsoft and its competitors. The article continues by explaining accusations have been made against Microsoft of the gain of “market power” through unfair “business practice’s” by using this power to “sabotage” its competition in other fields (Ahmed, Islam, and Khan, 2004). These “accusations” have led to further inquiry of whether the firm has created a “monopoly” within the market. This example has many variables that relate to the situation but ultimately the