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Will goods-service monopolies someday control the world? Will states have any other choice than subordinate to them? Will states then be able to make policy at all? Will this task be handed over to monopolies? Is politics then monotic?

Marketing Jan 13, 2021

Will goods-service monopolies someday control the world? Will states have any other choice than subordinate to them? Will states then be able to make policy at all? Will this task be handed over to monopolies? Is politics then monotic?

Expert Solution

The goods-services monopolies may control the world someday if there are large barriers to entry in the market of such goods and if such goods fall under the category of absolute necessities. The states will not be able to restrict such monopolies as they would be unable to arrange a substitute for the production of such goods and services.

States will still be able to make policies due to the presence of markets of other goods. But in the case of the goods in which monopolies exist, the role of the state will reduce. The role of the state will be inversely related to the number of barriers to entry of firms in the market of such good. the more the barriers to entry, the lesser will be the role of the government and vice versa. In a situation of complete barriers to entry, the decision making power regarding policies will shift from the government?s hands to monopolists? hands. Yes, in such a situation politics will be monotic.

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