Some of the points explaining why monopolies are bad for consumers are as follows. So let us check it out information on monopoly and its effects.
- Cosumers have no choice or limited choice during monopolies, monoply also controls the product as well as services which are not only supplied at highest prices but the quality is also affected sometimes during monopoly.
- Monopolies also lose any incentive to innovate, as the company already getting benefits, they may not innovate or introduced advanced version of products or services in the market.
- They can set any price of the product or services they want, as a result they may raise the cost to consumers and create inflation.
- They can also supply inferior products during monopoly.
- You might also like some advantages & disadvantages of monopoly to know more about monoly and its effects.