Walmart Monopolies

Evidence of monopolies can be seen throughout the history of business in general. If the company controls too much of the market share, this will provoke fear on individuals because, they will think that these companies will be able to do whatever it pleases; from raising prices, using excess capital to branch into even more areas. These fears are based on the premises that the single seller of a unique good with no close substitutes and/or no competition, essentially has a monopoly firm. The market demand output is based on the demand of monopoly firms. This gives the firm extensive market control and the ability to control the price and/or quantity of the good sold, making a monopoly firm a price maker. Even though a monopoly can control the market price, they cannot charge more than the maximum demand price that buyers are willing to pay. Also for the purposes of regulation, monopoly power exists when a single firm controls 25% or more of a market. There are a variety of reasons for Monopolies to form, including the following: if a firm

For example, Kraft Foods run out of options and forced to shut down dozens of plants and lay off over 30,0000 workers in order to meet Wal-Mart's price demands. Wal-Mart embrace a natural monopoly, a third way that constitutes monopoly. They operate in many areas where is almost impossible to introduce a competitor due to geographic or population reasons. In many small towns around Us and other countries, they are the only store selling products like eyeglasses, electronics, hardware, and sometimes even a full line of groceries. This leaves the residents of that town dependent on Wal-Mart's employment and sales tax dollars, meaning they little choice but to go along with whatever the big corporation