To start with, what is monopoly? Monopoly is a state of market where there is only one supplier faces many buyers. The monopoly is characterized by the lack of competition and high barriers for potential companies to enter the market. One of the most famous example of monopoly, and probable the biggest one in the world, is Microsoft. I¡¯m sure that everyone here is quite familiar with Microsoft and many of you may even have bad feeling about this company, because we have to buy its software, windows without choice, since Microsoft is the only provider. So, no mater you like windows or not, you have to buy it as long as you want to use computer.

Then, what are the causes of monopoly? As far as I concerned, monopoly is mainly caused by several reasons, they are: the government policy, the ownership of an essential resource, information and economics of scale.

From the discussion above, we can see that monopoly is not a healthy market style, although its still wide exists in the world. But I believe as time goes by, monopoly will finally disappear and the business world will become much fairer.

The second reason for monopoly is the ownership of an essential resource. The ownership of essential resource means that a firm may be able to control the market by acquiring control of that resource. For example, De Beers, a mining company that owns many diamond mines, have monopoly in the supply of diamonds for many years.

The last reason for monopoly is the economics of scale. Economics of scale means that large companies are able to produce products or services more cheaply then smaller companies. Therefore, those big companies can be more competitious than others. So they are capable to defeat others and dominate the market.

Some topics in this essay:
Bill Gates, Telephone Company, Microsoft I¡¯m, Mail Britain, De Beers, Consequences Monopoly, economics scale, essential resource, ownership essential, ownership essential resource, government policy, reason monopoly, essential resource information, resource information economics, healthy market, example monopoly, potential companies enter, monopoly companies, causes monopoly, companies enter market, policy ownership,