Question

What are supermonopolies and what do they do to the world?

Answer 1

Super monopolies can be defined as the firms operating in the industry where there are a limited number of service providers of manufacturers, but these companies have such a strong band name, present in the mind of the customer, and market share that the second largest company s way beyond to them.

The typical example of these companies can be Facebook and Google. These companies have the largest share in the industry and it seems that there is no catching by their competitors.

The effect of these firms can be enlisted as below;-

These firms do not allow any kind of competition in the industry and thus it results in inefficiency allocation of resources and creates a monopoly in the market which is not good for the customers.

These organizations are having a negative impact on competition, innovation, and services provided to the customers.

Due to lack of competition, the industry faces a lot of inefficiencies.

These organizations stifle innovation and entrepreneurship.