Monopoly Regulations:
A
monopolist, being the sole supplier creates some undesirable aspects in the
market:
(i)
Monopoly leads to concentration of price and output of wealth which is against
the spirit of equality in the society.
(ii) The
monopoly price of a good is usually higher than that prevailing under
competition. The consumer has to pay higher prices for the products.
(iii)
Monopoly is an inefficient type of
market structure.
(iv) A
monopoly firm does not bother to improve the quality of the product as there is
no effective threat of the new firms to enter into the industry.
(v) A
monopoly firm exploits the workers and pays them less wages.
In order
to check and control the ill effects of monopoly, a number of steps are taken by
the government to regulate monopolies.
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