A monopoly granted either to an individual or to a trading…
“A monopoly granted either to an individual or to a trading company has the same effect as a secret in trade or manufactures. The monopolists, by keeping the market constantly understocked, by never fully supplying the effectual demand, sell their commodities much above the natural price, and raise their emoluments, whether they consist in wages or profit, greatly above their natural rate.”
About This Quote
This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation.
Monopolies restrict supply, inflating prices and wages above natural levels, harming consumers and market efficiency.
In simple terms: Monopolies cause high prices and wages.
Key Takeaway
Support competition to keep prices fair.
Themes
economics
competition
market
monopoly
prices
Mood
critical
analytical
Type
economic
political
When to use this quote
- regulatory policy
- business strategy
- consumer advocacy
- pricing decisions
Key Concepts
Supply and demand
price distortion
natural rate
Questions to Reflect On
- How do monopolies affect innovation?
- What policies best balance competition and investment?
A Different Perspective
Monopolies can sometimes fund innovation despite higher prices.