Read the following excerpt from Adam Smith's The Wealth of Nations. How are his economic philosophies reflected in modern free enterprise systems?
A monopoly granted either to an individual or to a trading company has the
same effect as a secret in trade or manufactures. The monopolists, by
keeping the market constantly understocked, by never fully supplying the
effectual demand, sell their commodities much above the natural price, and
raise their emoluments, whether they consist in wages or profit, greatly above
their natural rate. The price of monopoly is upon every occasion the highest
which can be got. The natural price, or the price of free competition, on the
contrary, is the lowest which can be taken, not upon every occasion, indeed,
but for any considerable time together. The one is upon every occasion the
highest which can be squeezed out of the buyers, or which, it is supposed,
they will consent to give: the other is the lowest which the sellers can
commonly afford to take, and at the same time continue their business. 1