Corporation in Monopoly By: Diana Huynh and Timothy Escobar
Hey John, I know that you wanted to know a bit more about monopolies, since what has been on the news about that one corporation.
Well Sam, I do wanna know a bit more about monopolies, but tell me how that corporation and other corporations can become monopolies.
Let's go to my house and talk about it, it's the grey one on the corner.
That seems to make sense. So how do some of the corporations become monopolies then?
So monopolies are only ran by one firm which means they are in total control of everything. There is also no variety of goods and there are complete barriers to entry, which means no real competition for the one firm.
Well there are different ways they can become monopolies, for example, how Rockefeller took over 90% of the standard oil companies. Large companies can begin to buy out the smaller companies through stock purchases on the open market.
Woooow that's crazy that one someone can be able to do such a thing like that!
Well thanks for the information Sam that was really informative.
Another way that they could become a monopoly is through mergers and acquisitions even in the absence of a scarce resource. Well john that's two ways that a corporation can become a monopoly, there are other ways that I can tell you some other day.