Question

What are the advantages (2) and disadvantages (2) of having a monopoly in an Economy? Will you recommend that Monopolies be allowed to operate in the country?

Answer 1

Advantages of monopoly in the economy

1) the profit of the Monopoly can motivate them to invest in research and development and come up with new technology all in all

2) because there are no close products or substitute for a monopoly, resources might not be wasted all in all.

Disadvantages of a Monopoly

1) it can be mentioned is competition levels might lead to the lower quality of goods and services

2) price would be higher because of the less efficient scale of production on the whole.

It can be mentioned that Monopoly should be allowed to operate in the economy because they are the ones who actually bring the new technology to the country and in the economic development all in all as a result of which in the long run the country can progress