Disadvantages of Monopoly

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Disadvantages
1. Exploitation of consumers- a monopoly market is best known for consumer exploitation. There are indeed no competing products and as a result the consumer gets a raw deal in terms of quantity, quality and pricing. The firm may find it easy to produce inferior or substandard goods if it wishes because t the end of the day they know very well that the items will be purchased as there are no competing products for the already available market.
2. Dissatisfied consumers- consumers get a raw deal from a monopoly market because quality will be compromised. Therefore it is not a wonder to see very dissatisfied consumers who often complain about the firm’s products
3. Higher prices- no competition in the market means absence of such things as price wars that may have benefited the consumer and as a result of this monopoly firms tend to charge higher prices on goods and services hence inconveniencing the buyer.
4. Price discrimination- monopoly firms are also sometimes known for practicing price discrimination where they charge different prices on the same product for different consumers.
5. Inferior goods and services- competition is minimal or totally absent and as such the monopoly firm may willingly produce inferior goods and services because after all they know the goods will not fail to sell.

1st Disadvantages of Monopoly – Lower quality at higher prices
Companies having monopoly over a product are bound to take advantage of the fact that the consumers have no other choice but to buy that company’s product. So, the company dictates its prices and terms of business. This not only harms the consumers but also the quality of the product produced by the company. Since there is no competitor, the company hardly makes any effort to improve the quality of their product. It just continues to maintain the lowest acceptable level of safety and quality.…...

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