Question

Think of a company (not Microsoft) that used to be a monopoly but no longer is. Or had a product that nobody else sold and could be considered a monopoly. Did you notice a price change from when they were a monoply and when they were not? What were some of the benefits they had while a monoploy?

Answer 1

Lets take an example of Novartis pharma's cancer drug Gleevec.

Most of the pharmaceutical companies have a patent for their new drug which gives them a monopoly over the market . As a monopoly they were free to keep the price of the drug high and make a super normal profit .

recently, the pharma company lost a patent case in the Indian marker and was not able to keep the patent alive, they lost their monopoly and that allowed many other generic firms to manufacture that medicine. AS more firms came in, that decrease the price and increases the output in the market, the price of the  drug came down and with it the profit the firm was earning.