![]() ![]() It also denies consumers the right to use a competitor. A monopoly leads to exaggerated costs on products and services, a move that exploits consumers.Due to the lack of competition in the market, monopolists produce inferior products and services to consumers, a behavior that can be termed as corrupt.Monopolies are illegal because of the following reasons: In a market an individual's power to control the market is generated by specific sources. They do this either by increasing the prices of their products and services in the market or expanding their production scales. Profit maximizer: The motive that guides monopolists is revenue maximization.In this type of market, one business entity is the sole producer of all the output for a good or service. It means that a single business entity is the same as the market it serves. Single seller: A monopoly market is always served by one seller.Generally, price changes are always as a result of market conditions. For instance, if the demand for a given product increases, the monopolists are likely to revise the price of that particular product upwards. ![]()
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