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Do monopolies rip us off? Are monopolies bad for society? If so, what should our government...

Do monopolies rip us off? Are monopolies bad for society? If so, what should our government do about them?

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Answer #1

When compare to perfect competation market monopoly market is exploited the customers due to following the reasons

  1. The Price charged by the Monopoly firm is greater than MC whereas in perfect competation P=MC
  2. The level of output produced by the firm is less than optimal level comparer to perfect competition

The monopolistic market not desirable tot he society because the economic resource is not optimally utilized and consumers are exploited.

The government role here is to regulate the monopoly firm by adopting the suitable policy.

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