--- title: "Meaning & Key Takeaway of: A monopoly granted either to an…" description: "\"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 keepin..." image: "https://sms4smile.com/quotes/i/193/adam-smith-1040_business_a-monopoly-granted-either-to-an-individu_676541.jpg" --- # 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…” quote by Adam Smith](https://sms4smile.com/quotes/i/193/adam-smith-1040_business_a-monopoly-granted-either-to-an-individu_676541.jpg) [Download](https://sms4smile.com/quotes/i/193/adam-smith-1040_business_a-monopoly-granted-either-to-an-individu_676541.jpg) [Open image](https://sms4smile.com/quotes/i/193/adam-smith-1040_business_a-monopoly-granted-either-to-an-individu_676541.jpg) > “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.” [Adam Smith](https://sms4smile.com/quotes/author/adam-smith/) ## 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. ★ ★ ★ ★ ★ No ratings yet [Business](https://sms4smile.com/quotes/about/business/) [Company](https://sms4smile.com/quotes/about/company/) [Competition](https://sms4smile.com/quotes/about/competition/) [Demand](https://sms4smile.com/quotes/about/demand/) [Individual](https://sms4smile.com/quotes/about/individual/) [Investing](https://sms4smile.com/quotes/about/investing/) [Monopoly](https://sms4smile.com/quotes/about/monopoly/) [Profit](https://sms4smile.com/quotes/about/profit/) [Secret](https://sms4smile.com/quotes/about/secret/) [Trade](https://sms4smile.com/quotes/about/trade/) [Trading](https://sms4smile.com/quotes/about/trading/) [Wages](https://sms4smile.com/quotes/about/wages/) ## Related quotes > [Monopolists who fear competition and who distrust democracy because it stands for equal opportunity would like to secure their position against small and energetic…](https://sms4smile.com/quotes/henry-a-wallace/monopolists-who-fear-competition-and-who-distrust-democracy-because/) [Henry A. 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