The Theory of Monopoly Capital

The Theory of Monopoly Capital suggests that large corporations with dominant market positions—monopolies—use their power to influence prices, wages, and investment decisions. This leads to a situation where profits are maximized, but economic growth slows, wages stagnate, and income inequality increases. The theory argues that in advanced capitalism, big firms reduce competition, resulting in an economy that favors corporate interests over broader societal welfare, and creates structural limits to economic development and fairness.