S monopoly a good example of competitive free enterprise

#S monopoly a good example of competitive free enterprise free

Now food truck are kind of everywhere.В And that's exactly how capitalism is supposed to work. Demand was high and the barriers to entry were relatively low, so more and more competitors jumped in. In the last decade, gourmet cooks started moving to the street food business, competing in a market historically associated with lower-quality options like hot dog vendors. Monopolies are able to erect obstacles that economists call barriers to entry.В If a company starts offering a brand new product in a market with low barriers, they won't maintain the market power for very long. But the true power of a monopoly comes from its ability to keep competitors out of the market. Let's go to the Thought Bubble.ДЄ: A pure monopoly is a market controlled by one seller with a good or service that that has no close substitutes. In most cases, economists want to prevent monopolies, not celebrate them. After all, in Rockefeller's words 'The growth of a large business is merely a survival of the fittest.' Now, it's true that market economists love competition, but monopolies are the antithesis of competition. They dominated industries like oil, railroads, banking, and steel and would do anything to crush their competitors. Cutthroat monopolists, like Andrew Carnegie, JP Morgan, and John D. (Crash Course Economics Intro) J: When some people hear the word 'capitalist' they picture the robber barons of the 19th century.

#S monopoly a good example of competitive free enterprise free

Today we're going to talk about monopolies! Which are terrible, illegal, and only serve to exploit helpless consumers, except when they're delivering essential services that competitive free markets kind of fail to deliver. Jacob: Welcome to Crash Course Economic my name is Jacob Clifford. Want to find Crash Course elsewhere on the internet? Mark, Eric Kitchen, Jessica Wode, Jeffrey Thompson, Steve Marshall, Moritz Schmidt, Robert Kunz, Tim Curwick, Jason A Saslow, SR Foxley, Elliot Beter, Jacob Ash, Christian, Jan Schmid, Jirat, Christy Huddleston, Daniel Baulig, Chris Peters, Anna-Ester Volozh, Ian Dundore, Caleb Weeks Thanks to the following Patrons for their generous monthly contributions that help keep Crash Course free for everyone forever: And you might land on Free Parking.Д¬rash Course is on Patreon! You can support us directly by signing up at Come along, and let us monopolize your attention for a few minutes. Utilities like electricity, water, and broadband internet access are probably less efficiently delivered in competitive markets. In some industries, monopolies are the most efficient way to do business.

It's a terrible, terrible economic practice in which giant corporations dominate markets and hurt consumers.

What is a monopoly? It turns out, it's more than just a board game.