Picture Courtesy of Pinco.co.uk
What are the characteristics of Monopoly?
No, silly. I don't mean the board game. Although I love the card version of the board game as well (Monopoly Deal *_*) - Monopoly is a situation in which a single company, organization or a group has a control or owns all or nearly all of the market; for a given product or a set service (Miniature extract from Investopedia, read 2014).
There are three main characteristics of Monopolization by a company or an organization. These are as shown below:
Golden Characteristic 1 - There is no competition between companies
Golden Characteristic 2 - The company reaps an enormous and abnormal sum of profit
Golden Characteristic 3 - There are barriers to entry for other competitors
Monopolization - although an avid term to many third world countries; and is often seen in a horrible light, does have its own advantages to try own over it's disadvantages. The advantages can be seen such that because one organization owns the market, the pricing for the items or services are non-changing and not made a variable depending on what situations may bring. For example, it can be confusing and taxing to have customers needing to make millions of inquiries over the wide scope of items and services offered by different companies or organizations to find the perfect match to their desires - rather than having a universal company to deal with.
Other than that, this also helps the government in their spending. Referring back to Golden Characteristic 2 - in which the company reaps a gargantuan amount of profit; in the case whereby the company is owned by the government (which is more likely so, and if not then taxes), then the large profit can be used for capital investment or the sorts - probably for the betterment of the country in terms of infrastructure. Remember that the term united we stand can play a huge part here, there is a higher likeliness of the business or organization can penetrate national markets given that most of the funds are concentrated on one business alone rather than being divided among several groups. Another factor that contributes to this is wholesale - which means the monopolizing company can obtain their stocks with a discounted price, and then hand it over to their customers cheaper.
Monopoly in itself is a huge word to be playing with in the solidarity of our palms. To contradict the advantages as stated, there are also firm disadvantages. The first disadvantage will be fiercely obvious to eyes of the public. Referring to Golden Characteristic 1 - and then 3; There are little to no competition between companies, meaning that the monopolizing company gets to become the ruler or king of the Market. This becomes more solidly enforced when there are barriers preventing other companies from taking part in the Market. Because of this, there is little to no pressure for the monopolizing company to do well in what they do - resulting in potential slacking of the workforce in the workplace or put generally; the company. Onto a worser note, these monopolizing companies resort to reap benefits while exploiting their customers. After all, these customers have no choice but to either accept the non-satisfactory services or leave it and live without it. Customers will often complain and rage all over the media in order to get these companies to notice their plea - but it will go unnoticed. After all, one or two missing customers will not affect its earnings.
Price wars can also occur to the benefit of the customers if monopoly does not exist. Each company eye-ing the market will provide a better and more affordable service that can capture the longing hearts of the customers in the battlefield of earnings, and the best company wins. Monopoly on its own does not allow this to occur, and many monopolizing companies actually mark up prices and practice price discrimination - in which the prices for goods and services vary on who the customers are. For example, the branch of a certain company located in a certain area might charge higher for their products compared to another location based on the earnings of the people in those locations itself. Because their goods will never fail to leave their grasp and go into choiceless consumer's hands, they can offer inferior products and services to their own chagrin.
Another disadvantage of monopoly is that black markets will tend to exist. Since there are no other competitors to offer an item or a product at a cheaper price or of a higher par or standard, agents of the black market will offer illegal schemes and methodism by exploiting various loopholes in the Market. For example, many smokers tend to buy untaxed ciggarettes by illegal means for a cheaper price rather than ciggarettes on a contrary of taxed prices resulting in around four or five times the original priced amount.
The rich will become richer and the poor will become poorer. They will NEVER be able to break free from the chain of poverty if monopoly triumphs. Putting aside all advantages and disadvantages - monopoly will mean marked up prices. Adding salt to the wound, government taxes may occur. For example, Milkpowder for babies will cost around double or even triple it's original price - and breadmakers from lower income families will not have the incentive or funds to feed and raise their own blood and sweat, their young. They result in illegal means to raise their family in whatever ways they can; stealing, kidnapping and killing for money. Cars will be hijacked and then sold in other countries, or stolen just because the taxes imposed on them are too high to be longed for by ordinary citizens under the sun. People who are under the stress of these duple or triplefold multitudes will be under stress - and humans become desperate and impatient under pressure. Still wonder why the crime rate increases?
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All facts aside, my original plan was to complain about the inferior services by the company monopolizing the fixed-lines in my own country - having workforce far too lazy to even come and inspect the area I currently reside in, cancelling their appointment a number if times and rescheduling it, only to once again break their promise.
However, I don't see how complaining there can let me achieve any significant benefit - so I am going to once again play with lady-luck on submitting another form to install these fixed-lines in my area for phone and unlimited internet, not only for my own benefits but for the betterment of everyone residing in my current neighbourhood.
Special Thanks:
http://knownai.hubpages.com/hub/Advantages-And-Disadvantages-Of-A-Monopoly-Market
http://www.economicshelp.org/microessays/markets/advantages-monopoly/
http://www.investopedia.com/terms/m/monopoly.asp
XOXO
KiiKiiYu
