Monopoly is a situation where one firm, or one product have no competition or a replacement. Thus, get all the credit to one player. If this is true? Everyone will tell you differently. Does it worth it? Only the owner of that firm, but not consumer. What we get in the end are we? Let’s find out.
There are many examples of monopolies in different branches of trade, however, to draw attention to them, we will not. Let us examine the pros and cons of such a situation and try to figure out what is better – monopoly and healthy competition among producers.
The advantage of a monopoly for the consumer can be called stability. Anyway, we will consistently receive the same product, being confident in its quality.
But then immediately it is worth noting the honesty of the manufacturer, as in the case of lack of conscience, stability will be a direct disadvantage in this situation!
The second advantage of the monopoly is price. If this specific product segment one of a kind, then the price will be the only one, and to compare it with. This is very beneficial for owners when their product is unique and they do not have competitors. They will set the rules and play by them. Unfortunately, we have to admit that the pros at this end.
Cons, of course, there are, however, the difference between monopoly and competition is visible only in comparison, so now let’s talk about a situation where the market has more than two producers per item.
Advantages of such a situation, much more than in the first case. Judge for yourself. Healthy competition gives rise to the development of technology. In the absence of competition the monopolist can be lazy, slowing the progress. This may relate to how products, such as electronics and any services.
Secondly, competition makes the right choice consumer. Most often, we see a situation where conventionally two very different products share several common properties, but also a few differences that make them unique. Take, for example, operating systems, Android and iOS. They are fundamentally different, developing each in its own way, and have a large audience.
Competition creates also plug prices, where one product may be more expensive and some cheaper. If you take the same mobile phones, all agree that the Iphone is quite expensive, unlike the Samsung. From all this we can conclude that the presence of the market and competitors it stimulates development in all directions and allows us, the consumers, to make more informed, and most importantly, free choice. And this is something so mean.
I, as a person who always wanted to see something perfect in the market, I would like to see a producer who will meet all my needs and create a perfect smartphone. However, the presence of a dozen or more, manufacturers, produces the same choice, and everyone can find on the market something of my own. Personally, I own the phone and are happy with the system Bada 2.0, but it could not withstand the competition of the more famous and influential producers (Google and Apple), gradually moving away into the background. What I want to say? The more choice, the better for ordinary people.