Capitalist Economy
In a capitalist economy there are both wanted and unwanted monopolies. However, in a capitalist economy certain monopolies are needed. Monopolies have a big impact on the economy and the consumers because of the amount of control that the monopolies have on the economy. There are certain times when it is best to have monopolies then others, it really depends on the status of the economy. There is no doubt that monopolies do indeed play a critical role in a capitalist economy, but sometimes there are negative effects. It is indeed true to say that not all monopolies are unwanted in a capitalist society. An example of a monopoly that is not unwanted is that of a public utility, like SDG&E (San Diego Gas & Electric). These produce goods and services that are vital to the public's well being as far as functioning goes. Public utilities are an example of a pure or natural monopoly. A pure or natural monopoly is a single firm in an industry. This is the most effective way to provide very important goods and services. An example of a public utility monopoly that affects our everyday life is that of SDG&E. They are the only power company in San Diego County and thus they have a monopoly on San Diego. This, however is the kind of monopol
In addition, because of the fact that SDG&E is the only gas and electric provider they can name almost any price and we have no choice but to comply with their demands unless they can find a dependable alternative, like solar power. In conclusion, it is extremely important to have monopolies because of the simple fact that they are giant contributors, in terms of the economy. The US Government claims that Microsoft violated antitrust acts with its Window's operation systems (www. Because of certain climates and counties that do exist it is possible and more likely for certain types of companies such as utilities to come in and offer their service at any price they choose (South West, pg. In a capitalist economy it is a given that there will be monopolies playing critical roles as well as contributing to society. Microsoft Word, Excel, Outlook and so on). Unfortunately it is so, that most of the time you have no choice but to comply with their prices unless you can find a cheaper and more reliable alternative. The impact of monopolies is felt very heavily on the consumer. This also forced a buyer or seller or deal exclusively with a particular firm (www. For example, on your way to Anza Borrego, there is this one small town that has only one gas station which sells gas at extremely high prices. The biggest effect of a monopoly in a market is that it drives up the prices of the product in that market (South West, pg.
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Acceptance Essays
