Hello everyone! My name is John D. Rockefeller, and I'm here to teach my friend Marshall about Corporations in a Monopoly!
Rewind to 1870
A corporation is a form of business organization recognized by law as a separate legal entity having all the rights of an individual.
First i would like to know what is a corporation?
A monopoly is a market structure with only one seller of a particular product. Natural monopolies is a market situation where the costs of production are minimized by having a single firm produce the product .
well if that's a corporation, what is a monopoly?
okay... then can you have a corporation within a monopoly?
Of course! I Founded the Standard Oil Corporation and became one of the world’s wealthiest men and a major philanthropist. My Standard Oil corporation gained a monopoly in the oil industry by buying rival refineries, ensuring I was the lead distributor of oil.
Okay, well when a single Corporation owns all or nearly all of the market for a given type of product or service it is a monopoly, making my corporation a monopoly. You might recognize the name Exxon Mobile.
I still don't get how a corporation can be a monopoly?