Read the Terzic’s article “10 Myths”, discuss monopolies, their presence and to

Question

Read the Terzic’s article “10 Myths”, discuss monopolies, their presence and to some extent their utility and perils. Given what you have learned so far about monopolies, respond to the question: If the internet is the greatest “equalizer” and “leveler of playing fields”, why then do so many monopolies exist that are considered internet companies? In your response, provide examples of internet companies that are monopolies, why they are monopolies, and whether that is positive or negative from your perspective. Please concentrate on: grammar, clarity, and your ability to present a clear concise argument.

Explanation / Answer

When the internet claims that it provides a levelling field for the companies to come out in the international market and participate in a perfect competitive market, where supply creates its own demand. It actually may not be doing so the biggest monopoly that we can witness around us is Google. Google controls 68% of the market share in the search engine category. By the definition of monopoly, any company that controls 25% of the market share is considered to be a monopolist. If we consider the example of google, it has the power to mainitain it’s profit when the entire monopoly is witnessing a melt down. Google not only holds an important position as a search engine, it has now taken a multifaceted technology leap and has entered the field of online advertising. As the search engine controls the maximum share, the company has to gain the most out of the onlune advertisement business. In my perspective monopoly in any field has a negative effect. The monopolist can determine the entire flow of the market. The cost and the revnue are always in the favour of the monopolist. The most difficult problem associated with the monopolist is that they have control over the market, the monopolist makes it difficult for the companies to enter the market. If the firms restrict the entry, the chances of a fair competition gets restricted.

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