Question

How do monopolies survive in modern day?

Answer 1

Monopoly is a sole seller firm of its products, and where there is no close substitute. An unregulated monopoly can influence prices and has market power. For example, the local natural gas company, Microsoft and windows, etc.

Monopolies survives in modern days by prive discrimination, like granting discounts in festivals, or to sudents, to the older one's. And this is not surprising to realise that the monopoly takes alway all of the consumer surplus by charging each buyer exactly what he or she is willing to pay. Since monopoly is taking all of the surplus for itself, it has an incentive to maximize the total surplus, which is efficient.