Advantage And Disadvantage Of Monopoly Essay

733 Words Sep 25th, 2015 3 Pages
Monopolies are generally considered to be a disadvantage. However, in some circumstances monopolies can have many advantages for consumer’s social welfare. Having a monopoly means being the only seller, leaving you with no competition. In a monopoly the seller controls the prices of the particular product and or service; they also make the prices. Some of the few advantages of a monopoly are that monopoly avoids duplication and waste of resources, due to the fact monopolies make a lot of profit they can help invest for better technology and resources. Some disadvantages about having a monopoly are that consumers and buyers may be charged high prices for low quality goods and or services. Also, because there is no competition when there’s a monopoly it can be more likely to have out dated goods and services, because a monopoly being only one seller there is no close competition therefore there is no pressure to improve any of the products. Versus an oligopoly market system the quality of the product is good, as firms compete with one another and are constantly improving and renovating their products.
Mega big corporation is a new firm that would control eighty percent of the market in Brazil, and would become a monopoly. If I were hired by the Brazilian government I would step in and limit the formation of the monopoly. I believe the accumulation of power and leverage on behalf of the suppliers largely revolves around the fact that monopolies can ultimately control…

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