Does anyone have a good analogy to describe how a 'monopoly' works. Talking about business, not the game of course.
2007-02-01 11:45:41 · 4 answers · asked by M. M 4 in Education & Reference ➔ Words & Wordplay
If you understand the term "monopoly" it helps to describe the game better. A monoploy is simply when one corporation has the market on a product and makes it so that no other company could possibly market and sale the same product. This is against the law because if only one compnay sells a product that everyone needs then they can charge ridiculous prices and get away with it because of the necessity of the item.
Sirius Satellite Radio and XM satellite radio are two companies that provide cutting edge technology. They offer the exact same service which is 24 hours of commercial free music. People have the option to buy either or based on personal preference. If the two merged then there would only be one way to get satellite radio.They could take their montly rates from $12/month to $100/month and because there is no one to force them to be competitive you would have no choice to pay for that service if you wanted it. BTW--this is actually a problem that is currently being discussed based on allegation of the two merging. If you search for these two in particular you may get more insight on your analogy.
2007-02-01 11:51:58 · answer #1 · answered by dapoetic1 3 · 0⤊ 0⤋
"cornering the market"
2007-02-01 19:51:09 · answer #2 · answered by The Shoe 2 · 0⤊ 0⤋
corner?
2007-02-01 19:51:04 · answer #3 · answered by Anry 7 · 0⤊ 0⤋
takeover?
2007-02-01 19:48:55 · answer #4 · answered by iamsomud 2 · 0⤊ 0⤋