Two Theories of monopoly and
competition depicts that how monopoly is created in the market.
According to this theory, monopoly in market is created by the
interference of government in economic activities. Interference by
the government conferred certain benefits upon selected firms and
that help to create monopoly and restrict competition.
Further, theory notes that
anti-trust law does not create competition instead it thwarts
competition by imposing varied regulations. Government should not
participate in economic activities to ensure that competition is
promoted.
Free market system promotes
competition and reducing chances of monopolist instances.