About monopolies

Stop and think about this for a minute.

Let's say I own Coke. I want no competition from the market. I have to buy out Pepsi, RC, Sprite, Dr. Pepper, and whatever other soft drinks there are. So I go and do that.

Now let's assume I haven't gone broke. Ah! Now I have a monopoly! NOW I CAN CHARGE YOU CAFFIENE-LOVING BASATRDS $10/CAN MWAHAHAHAHAHAHAHAHAHAAAAAAAAAAA!!!!!!!

...

If all the soda costs ridiculous amounts, a businessman stands to make a lot of money by competitively marketing a cheaper coke.

AH BUT I AM EVIL CAPITALIST MONOPOLY MAN, I CAN EITHER BUY YOU OUT OR LOWER MY PRICES TO LEVELS YOU CAN'T COMPETE WITH AND JACK THE PRICES AGAIN!!!!!!!

This can't happen. If Coke buys out every piece of competition, it's going to go broke from people who can just take Coke's money by "threatening" the monopoly. There is also a great demand for reasonably-priced soda; "price swinging" would be too complicated due to all the businesses the market can provide, and it's also not going to look good for the consumer or Coke's stockholders.

Monopolies are bad for business. They can only happen if the business provides a truly excellent product at a price no one can compete with (in which case, who cares if they're a monopoly).