A market should be a place of fair competition, where multiple parties offer the best products and services. However, when a single company or entity dominates the market, this balance is disrupted. Monopolies not only harm consumers with higher prices and limited choices, but they also hinder innovation and overall economic growth.
Monopolizing a Market
Whoever monopolizes food (and withholds it) from the Muslims, Allah will afflict them with leprosy and bankruptcy.
Book 12: Chapter 6: Number 2155
Ibnu Majah. (2008). Sunan Ibnu Majah. Translated by Mohammad Mahdi al-Sharif.Monopolies Negatively Affect Markets and Consumers Companies that engage in monopolies have the power to control prices, limit the quantity of goods available in the market, and create various inefficiencies. This results in markets failing to operate optimally and harming consumers.
Limited Choices, Low Quality, Slow Innovation Without competition, monopolistic companies offer limited product choices of lower quality, yet consumers must pay higher prices. Even worse, monopolies rarely invest in research and development, resulting in extremely slow product innovation.
Monopolies Can Create Unhealthy Competition Monopolies can engage in exclusive practices that prevent other companies from entering the market. As a result, competition becomes unhealthy because other companies cannot compete effectively.
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