MicroLesson Two: What is considered a monopoly? In the context of our reading a monopoly is a business/corporation that dominates an industry to the extent that other companies cannot enter into or be competitive in the same market. From our reading the author (Steele) felt that the biggest issue with monopolies was their failure to innovate.

The main takeaway from this lesson is that a monopoly refers to a market situation where one producer (or a group of producers acting in concert) controls supply of a good or service, and where the entry of new producers is prevented or highly restricted, many theorists also believe that innovation slows in a monopolistic environment.

 

HomeBackVideoNext