Home > Free Essays > Economics > Microeconomics > Monopolies and Market Power in the US Economy
Rate

Monopolies and Market Power in the US Economy Essay

Exclusively available on IvyPanda Available only on IvyPanda
Updated: May 1st, 2021

Even though there are several types of market competition, large corporations such as McDonald’s have established monopolies to ensure that rival companies never get the same coverage and power. When a firm can gain significant power in the market, it is more likely to increase prices on goods and services (Thoma, 2014). On the other hand, monopolies aim to drive their competitors out of business or threaten new entrants to the market by setting prices below their costs and absorb losses until their competitors cannot survive longer. This practice is especially damaging to family businesses, which are the first to fail under significant pressure from monopolies.

It should be mentioned that the issue with monopolies goes deeper than economic effects because major companies also have political power and can contribute to changes in regulatory processes (Dechezleprêtre & Sato, 2017).

Large corporations can influence such processes against any threats to their power in the market by removing health and safety regulations, adding licensing requirements to prevent competitors from entering, avoiding sales taxes, participating in congressional hearings, and so on. Nevertheless, not all firms exploit their power or engage in behaviors to damage competitors’ livelihoods, but those that do have invested time and money into becoming renowned firms.

To conclude, the current state of market competition favors monopoly despite its damaging effects (Baker, 2017). Large economies such as the United States have had a long history of monopoly development through innovation and continuous progress to capture target consumers’ attention, which means that it is unlikely that they will stop using their power to gain leverage and influence market relations.

References

Baker, J. (2017). . Web.

Dechezleprêtre, A., & Sato, M. (2017). The impacts of environmental regulations on competitiveness. Review of Environmental Economics and Policy, 11(2), 183-206.

Thoma, M. (2014). Money Watch. Web.

This essay on Monopolies and Market Power in the US Economy was written and submitted by your fellow student. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly.
Removal Request
If you are the copyright owner of this paper and no longer wish to have your work published on IvyPanda.
Request the removal

Need a custom Essay sample written from scratch by
professional specifically for you?

Writer online avatar
Writer online avatar
Writer online avatar
Writer online avatar
Writer online avatar
Writer online avatar
Writer online avatar
Writer online avatar
Writer online avatar
Writer online avatar
Writer online avatar
Writer online avatar

certified writers online

Cite This paper

Select a referencing style:

Reference

IvyPanda. (2021, May 1). Monopolies and Market Power in the US Economy. Retrieved from https://ivypanda.com/essays/monopolies-and-market-power-in-the-us-economy/

Work Cited

"Monopolies and Market Power in the US Economy." IvyPanda, 1 May 2021, ivypanda.com/essays/monopolies-and-market-power-in-the-us-economy/.

1. IvyPanda. "Monopolies and Market Power in the US Economy." May 1, 2021. https://ivypanda.com/essays/monopolies-and-market-power-in-the-us-economy/.


Bibliography


IvyPanda. "Monopolies and Market Power in the US Economy." May 1, 2021. https://ivypanda.com/essays/monopolies-and-market-power-in-the-us-economy/.

References

IvyPanda. 2021. "Monopolies and Market Power in the US Economy." May 1, 2021. https://ivypanda.com/essays/monopolies-and-market-power-in-the-us-economy/.

References

IvyPanda. (2021) 'Monopolies and Market Power in the US Economy'. 1 May.

More related papers
Psst... Stuck with your
assignment? 😱
Hellen
Online
Psst... Stuck with your assignment? 😱
Do you need an essay to be done?
What type of assignment 📝 do you need?
How many pages (words) do you need? Let's see if we can help you!