Question

What are 2 disadvantages of a monopoly

Answer 1

A monopoly enjoys economies of scale as it is the only supplier of product or service in the market. The benefits can be passed on to the consumers. 3. Due to the fact that monopolies make lots of profits, it can be used for research and development and to maintain their status as a monopoly

Answer 2

There are many disadvantages of monopolies, the first one is that monopolies make only one company dominate the market completely which eventually, makes the prices go higher for consumers since there are no competitors.

The second main disadvantage is that there are no other competitors and the owner of the monopoly can pay lower wages to workers because there are no other places they can go to work.