Monopolies and Competition are usually taken as opposite ends to make real progress; but here author thinks differently. Many people think competition makes businesses better, but it’s actually monopolies that drive innovation. When you hear “monopoly,” you might think of big companies that don’t play fair. But having a monopoly can mean you’re doing something so well that no one else can compete because you’ve created something new.

Think of Google. It dominates online search, but that’s because it’s done an excellent job. It might seem unfair to others, but it benefits those who use Google’s powerful search engine. Monopolies don’t stop long-term competition. A company can compete in the market if it offers something new and better. Consumers win when companies try to outdo each other.

Monopolies have more advantages. They’re technologically advanced, enjoy network effects (the more people use them, the better), benefit from economies of scale (lower costs for making things), and have strong brands. If you want to know if a company can become a monopoly, check if it has a technological advantage, network effects, economies of scale, and a strong brand.