Monopoly Examples (2024)

FAQs

Monopoly Examples? ›

Natural gas, electricity companies, and other utility companies are examples of natural monopolies. They exist as monopolies because the cost to enter the industry is high and new entrants are unable to provide the same services at lower prices and in quantities comparable to the existing firm.

Natural gas, electricity companies, and other utility companies are examples of natural monopolies. They exist as monopolies because the cost to enter the industry is high and new entrants are unable to provide the same services at lower prices and in quantities comparable to the existing firm.

The U.S. markets that operate as monopolies or near-monopolies in the U.S. include providers of water, natural gas, telecommunications, and electricity.

Walmart is never largely affected by the pricing strategies of its competitors but instead its competitors are the ones who have to adapt their prices to match the prices of Walmart. The size of Walmart in comparison to its competitors gives Walmart the characteristic of a monopoly.

Amazon's Trickle-Down Monopoly shows that it is by eliciting and constraining the agency of small business owners — rather than simply eliminating them — that Amazon has gained its power over global retail. In the process, countless small businesses across the world have made themselves in Amazon's image.

And the judge ruled that Apple doesn't have monopoly power because customers can choose Android phones instead. She did find, however, that Apple's policies violated California's Unfair Competition Law.

With a few minor exceptions, the United States Postal Service enjoys a legal monopoly in the delivery of letters. Under the Private Express Statutes, private letter carriers are subject to fines and/or imprisonment. Why should the U.S.P.S. hold a legal monopoly?

The market structure that Netflix operates under is an oligopoly. In an oligopoly, there are a few companies that control the entire market. In the streaming market, Netflix, Hulu, and Amazon Are the main competitors.

This is due to the fact that Tesla has monopolized the parts and service aspects of the business, the plaintiff alleges, because Tesla owners can only get their cars serviced at Tesla service centers, or authorized service shops. Additionally, Tesla vehicles can only be repaired using Tesla parts.

Amazon, Meta, Google, Disney have massive brand recognition, and their services impact almost everyone. That's enough to have people consider them as monopolies. Though these companies dominate specific markets, they have competitors too.

Is Disney a monopoly? ›

Disney Oligopoly: The Market Structure Of Walt Disney

Oligopoly is a market structure whereby a few number of firms owns a lion's share in the market. This market structure is similar to monopoly, except that instead of one firm, two or more firms have control in the market.

A monopoly is a firm that is the only producer of a particular product. However, if you push on the definition of monopoly, things get a little murky. Does Coca-Cola have a monopoly? Well, yes they do.

The company operates in oligopolistic market structures in which there are other able and worthy competitors. For this reason, the company must always do its best to train their human resources and labor force to keep up with the competitors or even outdo them.

The service allows its customers to send, receive or hold money. PayPal holds a monopoly on online payments.

If Microsoft wants to use this ability to change the value of the product in the market, they can charge a higher price for a window that could be charged in a competitive market. Microsoft can fix the prices of the product. Microsoft created a monopoly through patents on its product.

The Justice Department and the states, which include New York and California, said Google had built its monopoly by buying up crucial tools that delivered ads to publishers. As a result, advertisers paid more for space on the internet and publishers made less money, as Google took its cut, they said.

Starbucks is a famous American multinational chain of coffeehouses, which is also characterized as the largest chain of the coffeehouse. It is considered an oligopoly because it is one of the few firms that... See full answer below.

While McDonald's may fulfill some of the criteria required of a monopoly, it falls short on many others. That said, other types of market structures might better describe McDonald's business, such as monopolistic competition and so-called natural monopolies.

Last time McDonald's Monopoly ran from September to October 2022 and around the same time in 2021. The new game launching today, Winning Sips, works in a similar way with customers getting a cup that comes with a sticker. You then peel it off to see if you've won a prize instantly, or an app play code you collect.

FedEx operates as an oligopoly, the reason behind this being its market concentration. Both FedEx and UPS accommodate around 80% of the market share.

Is Home Depot a monopoly? ›

The market structure for Home Depot is a dominant firm oligopoly. Home Depot is the world's largest home improvement retailer. Home Depot's focus is on pricing and product range. “Oligopoly” denotes a situation where there are few sellers for a product or service.

Answer and Explanation: Yahoo is a worldwide web services provider. It is an internet portal which incorporates search engines. It is not considered to be a monopoly because there are other similar service providers and internet portals which serve the same purpose as Yahoo.

It is a platform monopoly in the making. This is because it cannot support it's multi-billion-dollar valuation by being a ride broker. Uber needs to create a platform monopoly so that it can leverage into other verticals, from logistics to self-driving cars.

Wendy's is a fast food restaurant. In a sense, it has a monopoly. No other fast food restaurant makes a hamburger like Wendy's. No other fast food restaurant sells a Frosty.

Monopolies rule the internet. Alphabet owns search; Amazon runs e-commerce; Apple has the hardware; Meta controls social networking; and Microsoft dominates business software. The mantra of modern industry is monopoly, and the internet is one of its victims.

Natural Monopolies. A natural monopoly exists when average costs continuously fall as the firm gets larger. An electric company is a classic example of a natural monopoly.

Because of its large number of competitors and the comparatively small amount of power the firm has over the automotive industry, BMW is part of a monopolistic competition market.

Examples of real-life monopolies include Luxottica, Microsoft, AB InBev, Google, Patents, AT&T, Facebook, and railways. Monopolies are a common feature of capitalist economies, but governments must ensure that these companies do not exploit their position to impose high rates for goods and services.

Sports leagues such as the NBA are interesting to study economically. Instead of the league being a monopoly, each team within the league is actually its own individual monopoly. By definition, a monopoly exists when one single firm is the lone supplier of a particular good or service within a given market.

AT&T grew by relentlessly gobbling up rival companies and eventually struck a deal with the government to make its monopolization legal in exchange for universal service (known as the Kingsbury Commitment). As a monopolist, AT&T's unilateral decisions dictated the way people communicated.

Is UPS a monopoly? ›

In the 1970's, UPS had pretty much a monopoly outside of the United States Postal Service, and like today, not strong competition from them.

According to the FTC's complaint, Facebook is the world's dominant personal social networking service and has monopoly power in a market for personal social networking services.

It is the most common market structure. Fast food restaurants, hotels, gas stations, clothing stores, medical practices, legal firms, and hair salons are several industries that are monopolistically competitive, assuming they locate in areas with other companies that serve the same clientele.

A modern example of monopolies can be evident in the market of ticketing. Today, one of the largest companies in the ticket market is Ticketmaster. Founded in 1976, Ticketmaster originally licensed computer programs and sold hardware for ticketing systems.

Both brands operated locally before later expanding their markets in US and other global markets. The two brands are now operating in a monopolistic market with Dunkin`s Donut having nearly 11,000 restaurants in 33 different countries and Start bucks operating in 20,000 retail stores in more than 65 countries.

Starbucks and McDonald's are two companies that operate in markets with monopolistic competition as there are other firms that offer similar products as each of them.

Its market is in monopolistic competition as there are many competitors that try to imitate Starbucks. Therefore Starbucks does not have complete freedom to set its prices arbitrarily high as the other competitors could then start to siphon price-conscious customers away.

As a potential monopoly, the NFL has no significant regulatory authority like other multibillion-dollar industries (although some antitrust litigation has happened).

Pro sports leagues have been classified by government officials as monopolies, and are therefore subject to antitrust regulation.

The automobile industry is considered an oligopoly because it has considerable boundaries to enter it, it relies on brand loyalty and image to make sales, and it is dominated by three major automobile companies.

Is eBay a monopoly? ›

However, because of eBay's near-monopoly on the consumer-to-consumer ecommerce marketplace, that access does come with a cost: listing or transaction fees. The company charges sellers fees to list an item for purchase or transaction costs based on the final value of the item at the successful completion of an auction.

Is Google a Monopoly or Oligopoly? The bottom line is that Google isn't a monopoly, though there is some debate when it comes to whether Google uses monopolistic behaviors to gain an unfair advantage. The current antitrust lawsuit may offer clarity on that point.

+Offers in-app purchases. Online multiplayer on console requires Xbox Game Pass Ultimate or Xbox Live Gold (subscription sold separately).

1. Apple is an oligopoly. It follows aggressive advertising practices as its strategy of capturing a large segment of the market. Only a few companies are selling devices similar to those produced by Apple.

In a monopolistically competitive industry, Zara is expected to make profits in the short run but will break even in the long run because demand will decrease as average total costs increase. This means in the long run, a monopolistically competitive firm, such as Zara, will make zero economic profit (AmosWEB, 2001).

Google LLC is an ongoing federal antitrust case brought by the United States Department of Justice (DOJ) against Google LLC on January 24, 2023. The suit accuses Google of illegally monopolizing the advertising technology (adtech) market in violation of sections 1 and 2 of the Sherman Antitrust Act of 1890.

Law Prohibiting Illegal Monopolies

Anticompetitive monopolization violates federal antitrust law, notably the Sherman Antitrust Act, and are prohibited by state antitrust law, including the Cartwright Act in California.

In a monopolistic market, there is only one firm that dictates the price and supply levels of goods and services. A perfectly competitive market is composed of many firms, where no one firm has market control. In the real world, no market is purely monopolistic or perfectly competitive.

Restaurants, hair salons, household items, and clothing are examples of industries with monopolistic competition. Items like dish soap or hamburgers are sold, marketed, and priced by many competing companies.

The company is operating under the oligopoly market structure. It has close competitors such as Puma, Adidas, and Armour among others.

Does Disney have a monopoly? ›

A monopoly by definition, is the exclusive possession or control of the supply of a service. According to the letter of the law, Disney is an oligopoly, a state of limited competition in which a market is shared by a small number of producers or sellers.

How does McDonald's Monopoly work? McDonald's Monopoly is 'free to play' for customers when they buy food from McDonald's. Most menu items come with game pieces that allow customers to win a variety of prizes.

Natural Monopolies. A natural monopoly exists when average costs continuously fall as the firm gets larger. An electric company is a classic example of a natural monopoly.

AT&T historically argued that telephone service was a natural monopoly and that competition was inefficient. As the competitive era of telephone service came to a close, AT&T was successful in its argument and was able to establish itself as a government sanctioned monopoly.

As a result of its illegal monopoly, and by its own estimates, Google pockets on average more than 30% of the advertising dollars that flow through its digital advertising technology products; for some transactions and for certain publishers and advertisers, it takes far more.