Monopolies

Question

Monopolies

Quizplus · Accepted Answer

Monopolies may be beneficial to society if they are natural monopolies and are regulated. Natural monopolies arise due to high fixed costs or barriers to entry, making it costlier for new companies to enter the market. In these cases, a single company producing and selling the good or service is more efficient, leading to lower costs and lower prices for consumers. However, without appropriate regulation, monopolies may abuse their power and charge excessive prices or limit supply, leading to harm for consumers and society as a whole.