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Running Head: DISCUSSION
There have been developments in the business world as many businesses are
continuously being formed and others growing. This has had different impacts as new things
have been introduced into business to help in managing all these businesses. This can be said to
be the laws that guide these businesses all over the world. This paper will help us answer
questions in relation to Alexander Graham Bell after a review of the natural monopoly video
(Smith, et al. 1956).
When Alexander Graham Bell patent rights expired, smaller companies sprang up offering
Alexander Graham Bell created what was known as a monopoly back then. The
government also allowed Alexander Graham Bell to achieve this status by allowing him to be the
only phone supplier on long distance. He had patent rights. This meant that he was exclusively
able to exclude others from making, selling or rather using an invention for a limited amount of
time. However, his patent rights expired. This allowed for other small companies to rise up. They
offered lower prices in comparison to Bell. This basically increased competition but the
businesses were left at a disadvantage due to the low profits made. However, Alexander Graham
Bell took some harsh steps, for example, slashing rates and undercutting some competitors.
Bell would not allow independents to use his long-distance network. What was government
It is important to note that Alexander Graham Bell refused to allow the independents to
access his long-distance network. The government was supposed to take action against this
action as it was basically monopolizing itself the more....
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