What term describes the act of eliminating competition through market dominance?

The term that captures the act of eliminating competition through market dominance is monopolisation. Monopolisation occurs when a single entity or a group of entities exerts significant control over a market, reducing or eliminating competition. This control can lead to a market structure where one firm dominates, allowing it to set prices and dictate terms, often to the detriment of consumers and other businesses.

Monopolisation often leads to a lack of innovation and poor service, as the dominant firm faces little pressure to improve due to the absence of competitive alternatives. Regulatory bodies often monitor such behavior closely, as monopolies can harm economic efficiency and stifle market competition.

Understanding monopolisation is crucial in economics as it highlights the balance between allowing businesses to grow and the necessity of ensuring a competitive marketplace that benefits consumers through fair prices and innovation.