Think of a world without monopolies. A place where big corporations are non-existent and all firms are indistinguishable. Although this world would be a fantasy for many small businesses, in reality it would be a nightmare. Let's look at it this way, if all businesses were to sell the same products then many problems may arise since every business is trying to sell the same products to the same consumers. Take, for instance, the example of public transportation. If the transit industry were to become a monopolistic competition (or even an oligopoly), then a whole new line of transportation routes and methods would sprout up and Toronto's Transit System would become a labyrinth of roads and tunnels. As a result, a lot of citizens will be angry and civil unrest may arise. This scenario gives us a reason to support a monopoly market structure.
Another reason to support the existence of monopolies in our society can, again, be exemplified in the example of Toronto's Transit System. If the transit industry were to become a monopolistic competition than the new breed of companies, which will spring up, will add to our current supply of transits and thus a surplus of supply will result. Consequently the fares of transportation will be lowered to meet equilibrium. Moreover, the additions of new transits in Toronto will result in the production of new tickets by each of the respective mother companies. This, too, will cause great confusion among transit users. It also justifies one more reason to support the existence of monopolies in our society.
The last point of argument that we will be discussing will be the concept of conservatism. Generally speaking, human beings have a requisite need to have stability in their life. This fact can be explained by our fear of the unknown, which is often associated with the idea of change. However, with a monopolistic market structure, we can often expect to find familiarity with the product that we are purchasing because the monopoly has little incentives to change something that is successful. Yet, that is not to say that monopolies that are successful don't try to gain in productivity, efficiency, and economic development because a true businessman knows that no matter how "fine" his product is, there will always be room for improvement. It is also evident that to stay on top of the "game", the businessman has to find a way to enhance his products to the ever-changing needs of his customers and those that are potential buyers.
With this final example, we can conclude that monopolies are, for the most part, not always the profit maximizing "fiend" that they are perceived to be and that they (monopolies) are a very important part of our economy (and society) because it adds stability to our lives and gives us reassurance in an ever-changing world.
