The fact is that a monopolistically competitive industry does nothing to stop the growth of monopolistic companies. Competition simply means that the best product is also the best price. You cannot make an apple pie, but you can make a damn apple pie.
We don’t actually want to make the best apple pie. What we want to make is a product that is better than any other. That’s called monopoly.
The fact is that monopolistic companies do nothing to stop the growth of monopolistic companies. As such, they are the only companies in the industry that have the incentive to increase their prices. Competition simply means that the best product is also the best price. We dont actually want to make the best apple pie, but we want to make a product that is better than any other. Thats called monopoly.
In a market where a product exists but no one wants to buy it, that means it exists. In the case of an industry where no one wants to buy it, the only reason someone would care is if they could increase their profits. It means that there is no incentive for the industry to grow.
This is true on a basic level. The only reason you would want to compete in an industry is that you want to make a profit. This is true for both the government as well as private industry.
In addition to being competitive, monopolies are also called oligopolies because they are a monopoly on the resources that they control. The government may have the ability to monopolize certain resources like the air, but in the case of the private sector, you are limited to what you can get yourself.
Both monopolies and oligopolies are the result of market power and a lack of competition. In the case of the private sector, the government has the ability to expand their monopolistic control by buying out large businesses and turning them into a quasi-public company. The private sector does not have the same ability to acquire businesses.
But the private sector does have the ability to compete with any other market participant, especially with their own resources. This, of course, comes with a cost. Monopoly power can be abused and companies can sell their resources to other companies at below market prices or even at all. Companies that have monopoly power are often called “monopolistic” because of their ability to control market prices.
While monopoly power is definitely a problem, it also does not necessarily mean that companies are completely broken. For instance, some companies have used their market power to acquire other companies as well as competitors. The same company with monopoly power can also use their monopoly power to become a monopolistic competitor. For example, the oil giant ExxonMobil owns a number of oil fields that are now competitors to other oil companies.
As a result of their ability to control the market price of oil.