John D.
Rockefeller was the head of Standard Oil. When he found it in 1870, there were
about 250 other oil refineries. However by 1878, Rockefeller controlled the
resource, purchased the competition, and had political influence. Therefore,
Standard Oil controlled all oil production in the United States. The results
were high prices, inefficient production and significant barriers to entry.
Eventually, the Sherman Antitrust Act was used to break up Standard Oil, and
ever since the government has taken an active role in preventing further
monopolies.
The
monopoly exists today. Walmart can be considered as one of the biggest
monopolies in America. It comes into neighborhoods, offering jobs at minimum
wage.
