The Importance Of Monopoly In The United States

Throughout history, within in the United States, regulations have been placed in order to ensure a fair market for consumers. Oligopolies have been to be found in certain aspects to be illegal when firms intent to corner the market using anti competitive practices. Within monopoly there tends to be limited competitors because of there is no substitute for the product for which the company produced. A true monopoly is to keep a competitor out of the market and to put obstacles to discourage competitors in the market which is considered Barriers to entry without having high barriers the companies don’t tend to stay in business very long. Since we are a capitalistic economy entrepreneurs are constantly seeking profit. Monopoly is important to the business world because it becomes survival of the fittest. The economy needs competition
In the United States patent laws allow innovators to produce and sell their products for a period of 20 years before it is copied. Therefore, allowing money and time to invest in their products, by letting them recoup some of their losses that occurred when research as well as development was being done. Price discrimination happens all the time this usually happens when firms have a great share of market power and is based on what consumers are willing to pay. Therefore companies can run into trouble if they merge with other companies because it’s a violation of antitrust regulations. A good example of this would be AT&T trying to purchase T-Mobile because it would give AT&T more power over its competitors within the wireless community. Another example would be South Korea offering prices for automobiles to the Unites States at a lower rate due to multiple substitutions that are within the states, but being there aren’t as many in South Korea, therefore firms are able to charge more money for the same