Monopolies and Competition

Monopolies occur when a single company dominates a market, controlling prices and supply, which can reduce choices and innovation. Competition happens when multiple firms vie for consumers, encouraging better products, lower prices, and innovation. A healthy market balances competition to benefit consumers, while monopolies can lead to higher prices and less variety. Governments sometimes regulate or break up monopolies to promote fair competition and protect consumers' interests. The key difference is that competition fosters diversity and innovation, whereas monopolies can stifle both due to lack of alternatives.