In a monopolistic competitive industry, barriers to entry and exit are typically low, and companies try to differentiate themselves through price cuts and marketing efforts.

However, since the products offered are so similar between the different competitors, it's difficult for consumers to tell which product is better.

Some examples of monopolistic competition include retail stores, restaurants, and hair salons. Also, natural monopolies can arise in industries that require unique raw materials, technology, or it's a specialized industry where only one company can meet the needs.

Pharmaceutical or drug companies are often allowed patents and a natural monopoly to promote innovation and research. There are also public monopolies set up by governments to provide essential services and goods, such as the U.

Usually, there is only one major private company supplying energy or water in a region or municipality. The monopoly is allowed because these suppliers incur large costs in producing power or water and providing these essentials to each local household and business, and it is considered more efficient for there to be a sole provider of these services.

Imagine what a neighborhood would look like if there were more than one electric company serving an area.

The streets would be overrun with utility poles and electrical wires as the different companies compete to sign up customers, hooking up their power lines to houses.

Although natural monopolies are allowed in the utility industry, the tradeoff is that the government heavily regulates and monitors these companies.

A monopoly is characterized by the absence of competition, which can lead to high costs for consumers, inferior products and services, and corrupt behavior.

A company that dominates a business sector or industry can use that dominance to its advantage, and at the expense of others.

A monopolized market often becomes an unfair, unequal, and inefficient. They were also using shoddy pipeline which was very prone to leakage.

Later standard oil started creating a monopoly along with developing infrastructure aiming to cut down the cost and dependency. Despite the eventual breakup of the company in , the government understands that this upcoming monopoly will create a reliable setup, infrastructure and deliver low cost.

The profits of the standard oil and a good trend of dividend helped in gaining investor trust and thereby resulting in more investment from the investors which helped it to grow larger further.

The company came into existence after the merger of two huge brewing companies named Anheuser Busch and InBev. After the merger, they become the distributor of over types of beer across the world.

The marketing companies of beers might be different but their manufacturers are the same. Facebook is the leader in the social media market with a maximum percentage of the market share.

It is considered to be a monopoly because it lacks direct competition for any competitor, it has the pricing power and it has the dominant user base all over the world.

This creates an illusion in the mind of the customer that they have a variety of sunglasses to choose from although they are all manufactured by one Company.

Microsoft — Microsoft is a Computer and software manufacturing Company. While these beer names are different and have a different composition to give a different taste, however, they belong to a single Company.

So, when people consume different Beers they are paying a single Company in a sense. The Company has grown into a web of services interlinked with each other like the maps, Gmail, search engine, etc.

The Company has left its competitors — Yahoo and Microsoft behind with its innovation and technological advancement.

Patents provide a legal monopoly to a Company albeit for a short period of time. Die Informationen sind fehlerhaft. Ich bin anderer Meinung.

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Kommentare zu diesem Artikel. Jetzt anmelden. You can NOT build at all if one property in the set is mortgaged.

The purpose of houses and hotels is to increase the rent of a property. This is the most evident and easiest way to win Monopoly be the richest player.

The more houses, the higher the rent rises. This normally results in bankruptcy but not all the time. No property can be sold or traded with buildings on it; these must be sold back to The Bank for half of what it cost to erect them.