You are here

Advantages and Disadvantages of Monopoly

Some Advantages and Disadvantages of Monopoly are as follows. So let us check it out some information of advantages and disadvantages to know more about monopoly. Some other entities related to monopoly such as oligopoly, monopolistic competition, perfect competition , monopsony are also listed at the end of the article.

Advantages of Monopoly are:

  1. Monopoly makes lots of profit hence it can be used to encourages Research and Development (R&D).
  2. Economic of scale can be gained and consumer may get benefit of it.
  3. Monopoly encourages innovation.
  4. Competiton for corporate control.
  5. Abnormal profits in long term can be seen in monopoly of products or services.
  6. There is possibility of price discrimination during monopoly.
  7. Monopoly avoids undesirable duplication of products or services.
  8. New technologies that may reduce cost of monopoly can be made by competitors.
  9. A firm or company can enjoy the power of monopoly.
  10. Profit gained by monopoly can be used for investment.
  11. There is no competiton in market as there is only one single seller of particular product or services.

Disadvantages of Monopoly are:

  1. Prices and costs of products or services may increase any time due to monopoly.
  2. Power and wealth.
  3. Costly functions.
  4. Potential of supply to be limited - less choice.
  5. Poor level of service is observed dur to lack of competiton which may lead to low quality and outdated products or services.
  6. Potential for inefficiency due to lack of competition.
  7. Monopoly may restrict the quantity of goods they supply in order to keep prices of product high to earn more profit.
  8. Exploitation of consumers or customers and they are charged high prices for low quality of products.
  9. Buying problems can be observed in monopoly.
  10. Monopoly may reduce the satisfaction of the customers.
  11. Sometimes monopolies may product low quality product as there is no competitor to produce better quality product.
  12. Monopolies may not invest their money and time in developing new products because they can sell their existing products without any competition.

Some of the terms relate to monopoly are : Oligopoly, perfect competiton, monopolistic competition and monopsony. Also find out other articles related to monopoly.

Explore more Information

WHAT OTHERS ARE READING

Full Form of DMR,MBBS

Diploma in Medical Radiology (DMR) is a course offered by many medical schools in various countries.(Other full form and meaning of DMR are also available) So check it out other articles related to the given term.

MBBS- Bachelor of Medicine, Bachelor of surgery(Degree awarded by medical  school).

ABP News Full form

This Ananda Bazar Patrika (ABP) News information, meaning abp full form.

You will also get here full name of abp.

The news channel wast recently known as STAR NEWS.

This is one of the popular channel among other channels.

Please visit Abp News for more information

About Azadirachta Indica Description of Neem

Some points about azadirachta indica i.e., Neem tree and its description are discussed here. Some of the features of the neem are as follows so let us check it out one by one:-

  1. Azadirachta indica is a tree.
  2. Neem is an evergreen tree.
  3. Generally it is grown in tropical climate.
  4. The bark of the neem tree is thick, rough and brown in colour.
  5. The taste of the neem leaves is bitter.
  6. It usually grows upto 20 to 25 Meter.
  7. Generally leaves, fruit, root, bark or whole tree is used for medicinal purpose.

What is the Full Form of FIR?

FIR - First Information Report

FIR is the written document which is prepared by the police department when they receives an information from the victim of a crime or the person on his or her behalf.

FIR is signed by the informer and a copy is given to the informer.

FIR is registered in the nearest police station where the crime has taken place

The FIR register contains following information:

Full Form of DDT in Biology

DDTFull form in Biology can be defined in many ways are discussed below, so check it out different full form of the term BCG which is used in Biology.

The full form of DDT in biology is Dichloro Diphenyl Trichloroethane. It is colorless, odorless and tasteless chemical compound generally used in agriculture as an insecticide or pesticides.

DDT is used to kill mosquitos and very effective chemical compound  for prevention of malaria,

What are the Types of Friction ?

What are the Types of Frictions ? Let us check it out some of the types of friction to learn more about friction. This type of frictional force is responsible for wear and tear of two bodies, Following are some of the types:

Types of Friction are:

  1. Static Friction
  2. Kinetic Friction
  3. Rolling Friction
  4. Fluid Friction

Static Force comes into action when a body is forced to move along a surface but the movement of the body does not starts. Example Pushing on a wall