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colonial ...

M¢25 Funded By Mahalo ? | July 10, 2009 08:49 PM

Whats wrong with a monopoly?

Everyone freaks out about monopolies, because they think when your the only one who owns a product you can charge whatever you want. Rockefeller had a monopoly on oil, but yet the price of oil dropped signifcantly over his time, so whats the problem. You make money by bringing in more customers, not by charging your current customers more!

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winmaster

July 10, 2009 10:07 PM

Monopolies are bad because they abolish competition. Competition is a big part of our economy. It gives companies a reason to treat the consumer well, offer low prices, and come up with new technologies, because if they don't, their competitors will. Monopolies are bad because without competition, there is no reason for the company to spend time and money improving their products and treating the customer well, because if the customer needs that product, they have no choice but to do business with the company.

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colonial b...

July 11, 2009 01:08 AM

Companies buy out other companies, thats how the market works. Companies always have a reason to treat the customer well, so they'll buy the products. Supply and demand determines the price not the company. They can't just charge the high price they want. People always have the choice, they have a choice not to buy the products. As I said at the top, you make money by bringing in more customers, not by charging more to the customers you already have. Monopolies dont seem to happen that often anyways.

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winmaster

July 11, 2009 04:32 PM

While what you say is mostly true, if I absolutely need somthing, and only one company sells it, I must do business with that company. If Dell is the only company that sells computers, and I need a computer for my job, I must buy a computer from Dell, because I probably don't have the resources to build one myself (assuming that Dell also has a monopoly on parts). Yes, I have a choice, but if I want to keep my job, I must choose to buy a computer from Dell. Also, if Dell is the only computer company, they have no reason to make newer and better computers, because people won't know the difference. But if HP comes along with something new and innovative, Dell will have to come up with something to make their computers appealing as well. Competition drives our economy. Companies that have a monopoly aren't always bad or evil, but competition keeps them on their toes.

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