What is a monopolist?
The monopolist is an individual who aims to eliminate the competition of a product or service to achieve full market control. This person uses a number of tactics such as buying, mergers and government monopolies to increase the strength of their business. Many countries oppose the formation of monopolies and have various antitrust laws to fight monopolistic practices.
The monopoly is classified as an unfair competitive advantage on the market, usually the owner of most market share or complete dominance of stores. The advantage for a monopolist is that his business or service has no competition and therefore will have security and can set its prices at any level. Historical records show that monopolies have existed for centuries.
The monopolist has many tactics to create a monopoly and dominate its market competition. Purchase of companies is one of the most common types of maneuvers because the more involved company uses its capital to buy smaller companies and absorb client fromAid of this organization. The mergers are similar to tactics that are mutually beneficial for two companies, because both competing organizations are connected to one group and share a client base, creating less competition. Many governments also provide monopolistic possibilities. Patents sponsored by the government and copyright provide exclusive rights to the sale of a particular product for a limited period of time, which will eliminate any competition.
One of the most famous examples of a monopolist in action was John D. Rockefeller of Standard Oil. Suddenly, the oil giant owned 88 percent of all oil sales in the United States. The government announced this unfair competition and in 1911 created a number of antitrust laws that effectively ended standard oil control. The result was broken by the company into several Smaller, competing companies.
This is not the only case and around the world wereCreated antimonopolistic laws. Two of the most famous are the anti -monopolous law of the United States and the Act on the Economic Act of the European Community. Both consider competition necessary for healthy growth in the free market economy. These laws, as well as those that have evoked in response to the Oil Standard, limit the ability of society to buy competition and unfairly set prices. Many economists are divided into justice of these laws, some claim to help strengthen the competition and opponents who claim to be unnatural to restrict monopolies because the free market should support the strongest society, not to defend it.