This is one of the definitions of monopoly that makes a lot of sense to me. A monopoly is just a situation where a company controls the buying power of the consumer. For example, if you buy a car at a car lot, most likely that car is not going to be a better car but rather an inferior car. The car you bought at the car lot is a product of the buying power of the person who bought the car.
This is exactly right. A company would be more likely to control a product if the consumer could buy it directly from that company rather than through an intermediary.
I know this makes no sense to many of you, and I don’t have a definitive answer, but I think that the reason that the consumer has a choice is because the very act of buying a product has an impact on the companies who created it. For example, the fact that you put on a product and wear it proudly is a good thing for companies, but the fact that you actually take the product home and use it is a very negative thing for the companies who created the product.
The good guys (the companies that created the product) have an incentive to ensure that you actually use the product. You could say that the consumer has an incentive to use the product. But the consumer doesn’t have an incentive to use the product. Therefore the companies that created the product have an incentive to ensure that the consumer does use the product. I know this may sound like a ridiculous, out-there theory, but I believe it.
The good guys don’t get the right incentives to use the product. They get an incentive to do nothing. Then they pay a penalty to use the product. This is a well known theory. We’re talking about what the good guys would be paid if they used a product.
The problem with monopoly is that the market is extremely competitive. The companies that create the good product, or the company that creates the product that the consumer wants, are very much in competition with each other. So even if the market were a monopoly, there would be very few companies that could do both and be profitable without the other. Because of this, consumers would be very much on their own.
