A monopolistic market describes a market in which one company is the dominant provider of a good or service. In theory, this preferential position gives said company the ability to restrict output, raise prices, and enjoy super-normal profits in the long run.<\/p>" } } , { "@type": "Question", "name": "What Are Some Examples of a Monopolistic Market?", "acceptedAnswer": { "@type": "Answer", "text": "
Historically, John D. Rockefeller's Standard Oil and J.B. Duke's American Tobacco Co. are classic examples of monopolies. Microsoft has long commanded a virtual monopoly on personal computer operating systems. As of October 2024, its desktop Windows software has a market share of about 73%, down from about 95% in 2009.<\/span><\/p>"
}
}
,
{
"@type": "Question",
"name": "Are Monopolistic Markets Bad?",
"acceptedAnswer": {
"@type": "Answer",
"text": " Monopolistic markets are highly controversial, mainly because—theoretically—they give the monopoly the ability to set extortionately high prices for products and services that the public needs, owing to a lack of available substitutes. That said, governments in most countries will never let this happen and only permit monopolistic markets when they are deemed beneficial to the public. In these cases, those permitted to operate as the dominant player are usually heavily regulated and not free to charge whichever prices they choose.<\/p>"
}
}
,
{
"@type": "Question",
"name": "How Are Monopolistic Markets Regulated?",
"acceptedAnswer": {
"@type": "Answer",
"text": " The Federal Communications Commission (FCC), the World Trade Organization, and the European Union each have their own rules for managing monopolistic markets. These rules are often called antitrust laws<\/a> and are designed to protect consumers from predatory business practices and ensure fair competition.<\/p>"
}
}
]
} ] }
]