A Monopoly Reflection

Name
Professor
Course Title
Date
A Monopoly Reflection
Capitalism is a situation where private firms produce a variety of goods and services provided there exists a ready market for the same. In other words, production solely depends on the market consumption rates and the patent rights are owned by the producing firms. In one way or another, they practice consumer discrimination since only those who are willing and able to meet the market prices are considered.
On the other hand, the command is a situation where the government is the critical player in the production and distribution process. In this case, the ownership and production rights belong to the state, and it mostly focuses on the primary and essential goods and services that being left in the private sector, they are likely to exploit the consumers. The economy should adopt a command system over the capitalism one since, in the former, there is expected to exist fair pricing and minimal exploitation.
Advantages attached to capitalism include competition which ensures consumers to have a variety to choose from as well as firms get incentives thus making them efficient. The adverse effects of capitalism are that exploitation of consumers is possible due to monopoly powers and the monopoly powers may as well result to low wages for workers. In the case of a command, the advantages are; there is no chance left for a monopoly to exist and the mobilization and use of resources in the economy is streamlined. The…