A Monopoly – In Business. Meaning

A monopoly is when one company owns the vast majority of the market share, and can control the prices and the supply.
(No i am not referring to the board game called Monopoly).

Monopoly in theory.

In a theoretical market situation, a pure monopoly rarely occurs, mostly because of anti-trust laws that prevent big companies from buying competition and consolidating their power over a market. In theory capitalism challenges monopolies, as it attracts new challengers to take on big companies a chop market share and profit.

Monopoly in reality.

In the real market situation, monopolies happen all the time, from under the table dealings, to funding smaller competitors. Companies manage to control markets and dictate the price. When caught, they are often fined (example: windows monopoly).

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Abdallah Alaili

I'm a serial entrepreneur (mostly tech) and micro-investor (tiny), this is a blog to learn from other entrepreneurs and spread the wisdom to many more. You can find me on: Instagram - Twitter - Linkedin - more about me