Is a monopoly a good thing? From the standpoint of economists, monopolies are anything but good. Economists believe that the perfect economy would be one that has many competitors with significantly low barriers to entry. Such an economy would greatly benefit the consumer due to the lower prices of the products. From a businessmans standpoint though, a monopoly is not so bad. The biggest threat to a company or firm is competition. Competition drives prices down resulting in less profit. The main goal of a businessman is to make a profit, which is hindered by competition. Generally, economists and businessmen do not see eye to eye on the subject of monopolies for this reason. The question is, is a monopoly a good thing? The answer to this question will be attempted through the outcome of this paper.Before exploring the qualities of a monopoly, it must first be defined. A monopoly is simply a market structure characterized by a single seller of a well-defined product for which there are no good substitutes and there are high barriers to entry for any other firm into the market for that product. In other words, a monopoly exists when only one firm in the market is selling a product, and entry into the market by other competitors is difficult. For this reason, a monopoly is not the best form of structure according to an economists standpoint. Can a monopoly be good? The answer to this question has been widely negotiated. In some instances, a monopoly is essential. The post office and utilities companies are two examples of when a monopoly is necessary. Some argue that the long-distance phone company, should also be a monopoly as well. AT&T (American Telephone and Telegraph) is the largest telecommunications company in the United states, and a worldwide leader in communications services. It was the parent company of the Bell System until January 1, 1984. The deregulation of AT&T was primarily based on the principle t...
