Past Simple vs Present Perfect

 What is a Monopoly?

Imagine you want to buy a new video game. You go to the shopping street in your town, but you see something strange. There are five different shops, but they all have the same name. They all sell the same video games, and they all have the same prices. You have no choice. This is a little like a monopoly. A monopoly is when one company is the only seller of a product or service in a market. The word "monopoly" comes from Greek words meaning "alone to sell." When a company has a monopoly, it is the only choice for customers. There is no competition.

How Do Monopolies Happen?

There are several reasons why a monopoly can appear.

1.  Government Monopoly: Sometimes, the government says that only one company can provide a service. For example, in many countries, only the national government can deliver letters to your home. This is the postal service.

2.  Resource Control: A company can control a very important natural resource. If only one company owns all the diamonds in a country, it has a monopoly on diamonds.

3.  Technology and Innovation: A company can invent something completely new. For example, for many years, one company owned the patent for a new life-saving medicine. A patent is a special paper from the government that says, "Only you can make and sell this product for a number of years." This rewards the company for its innovation.

4.  Buying the Competition: A big, strong company can sometimes buy all its smaller competitors. Slowly, it becomes the only company left.

The Problem with Monopolies

For the company, a monopoly is great. It can do almost anything it wants. But for customers, monopolies are often a big problem. The main problem is *price*. When there is no competition, the monopoly company can set very high prices. You have no other shop to go to, so you must pay the high price. For example, if only one company sells electricity in your city, you cannot say, "No, thank you, I will buy electricity from another company." You need electricity, so you pay.

Another problem is *quality*. When a company has no competition, it does not need to try very hard. It doesn't need to make its product better or its customer service friendlier. Why should it? You have no other option.

What Can We Do About Monopolies?

Because monopolies can be bad for people, governments often have rules to stop them. These rules are called "antitrust laws." Their job is to protect competition.

The government can say that a big company is too powerful and must become two smaller companies. It can also stop a big company from buying a small competitor. Sometimes, if a company has a monopoly because of a patent, the government can allow other companies to make the product after the patent ends.

 A Famous Example: Microsoft

In the 1990s, the computer company Microsoft was very powerful. Its Windows operating system was on almost every computer in the world. The US government said that Microsoft was using its power to stop other companies, like Netscape (a web browser), from competing. It was a big legal fight. In the end, Microsoft had to change some of its business practices.

 Conclusion

Competition is very important in business. It helps to keep prices low and quality high. A monopoly is the opposite of competition. While it is good for the one company, it is usually bad for everyone else. That is why most countries have laws to control monopolies and protect the choice of the customer.

Read the text "What is a Monopoly?" and choose the correct answer for each question.

1. What is a monopoly?
a) When there are many companies selling the same product.
b) When one company is the only seller of a product or service.
c) When the government controls all shops.
d) When prices are very low.

2. The word "monopoly" comes from words that mean...
a) "to sell cheaply"
b) "to make a product"
c) "alone to sell"
d) "the best company"

3. According to the text, why is the postal service often a monopoly?
a) Because it is not a popular service.
b) Because it controls a natural resource like diamonds.
c) Because the government says it is the only company that can deliver letters.
d) Because it bought all its competitors.

4. What is a "patent"?
a) A special paper that allows only one company to make a product for some years.
b) A law that stops all monopolies.
c) A very high price for a product.
d) A type of technology.

5. What is the MAIN problem with monopolies for customers?
a) Companies have too much competition.
b) Products have very high quality.
c) Companies can set very high prices and you have no other choice.
d) Governments don't like them.

6. Why is quality often a problem in a monopoly?
a) Because the company doesn't need to try hard to make its product better.
b) Because the company has too many customers.
c) Because the government controls the quality.
d) Because the products are very new.

7. What are "antitrust laws"?
a) Laws that help companies become monopolies.
b) Laws that protect competition and stop monopolies.
c) Laws that set prices for products.
d) Laws that give companies patents.

8. What can a government do to stop a monopoly?
a) It can force a big company to become two smaller companies.
b) It can make the company sell its products for free.
c) It can give the company a new patent.
d) It can increase the prices.

9. What was the problem with Microsoft in the 1990s, according to the text?
a) It was selling computers at very low prices.
b) It was using its power to stop other companies from competing.
c) It had a government monopoly on software.
d) It invented the first web browser.

10. Why is competition important in business?
a) It helps to keep prices low and quality high.
b) It helps one company to become very powerful.
c) It makes the government happy.
d) It allows companies to set any price they want.

II. Creative Task: "You are the Mayor!"

Situation:

Imagine you are the mayor of a small town called "Sunnyville." For many years, only one company, "Bright Lights," provided electricity to your town. They have a monopoly.

The Problem:

The people of Sunnyville are unhappy. They complain that:

1. Bright Lights charges very high prices.

2. When there is a problem with electricity, their customer service is very slow and unhelpful.

3. The company doesn't want to use new, clean energy sources (like solar or wind power).

The people are angry and want you to solve this problem.

Your Task:

Prepare a short speech (write 8-10 sentences) that you will give to the people of Sunnyville. In your speech, you must:

1. Acknowledge the problem. Tell people you understand they are unhappy with the monopoly.

2.  Explain WHY the monopoly is bad. Use at least two ideas from the text (for example: high prices, low quality, no choice).

3.  Offer your solution. What will you do? Choose one or two ideas:

    *   Will you try to attract a new electricity company to Sunnyville? How?

    *   Will you use "antitrust laws" to break the "Bright Lights" monopoly?

    *   Will you ask the government for help?

    *   Will you create a new town rule for electricity companies?

4.  Finish with a positive message for the future of Sunnyville.

Useful Vocabulary to Help You:

*   "As your mayor, I understand that..."

*   "The main problem with a monopoly is..."

*   "This leads to... (high prices / bad service)"

*   "There is no competition, so..."

*   "My plan is to..."

*   "I will propose to..."

*   "In the future, I believe our town will have..."

Example Beginning:

"Dear citizens of Sunnyville, I am here today because I hear your complaints. I know that the high electricity bills from 'Bright Lights' are a big problem for many families. This is a classic example of why a monopoly is bad for people..."

Now, write your speech!

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