Question

Research an example of a monopoly in the United States economy, past or present. Construct a brief explanation of the monopoly and its impact on the market. Your response should be about three hundred words. Use primary and secondary sources, and cite them.

Answer 1

Examples of Monopoly

No U.S. markets are more monopolistic than utilities. Providers of water, natural gas, telecommunications and electricity are usually granted exclusive rights to service municipalities through local governments.

Harold Demsetz pointed out that these markets had no such monopoly tendencies before exclusive rights were granted; up to 45 different electric light companies operated in Chicago in 1907, for example.

Trucking and railroad companies became monopolistic after establishment of the Interstate Commerce Commission, which imposed heavy costs