Search
Home » Economics » Monopoly (Controls Causes Advantage)
Written by ,

Economics


Monopoly has different controls which we shall be highlighting but first let’s define it

This is a situation where there is only one producer or supplier of a particular commodity and who has the power to influence the price of the commodity in his/her favor.

Monopoly

Causes Of Monopoly

  1. Natural cause
  2. Merging of producers
  3. Act of Parliament
  4. Advertising
  5. Patent law
  6. To protect public interest
  7. The level of technology

Advantages

  1. It increases production
  2. Increase in supply
  3. It increases profit
  4. It avoids waste
  5. Consumers will benefit
  6. It leads to invention
  7. Creation of employment
  8. Cost per unit of the goods will reduce
  9. Prevents over production
  10. Members of staff may benefit by way of bonus
  11. Good use of resources
  12. Expansion is possible.

Disadvantages of  Monopoly

There are lot of disadvantages but in exam conditions you will only need to highlight some, below are the disadvantages of monopoly

  1. It breeds inefficiency
  2. Reduction in supply
  3. Results in inflation
  4. Causes unemployment
  5. Consumers bear the brunt
  6. It increases the cost of goods
  7. Results in over-production and wastage
  8. It leads to scarcity of goods
  9. Consumers are denied their traditional right of choose and pick.

Controls Of Monopoly

You can control it through the following methods

Related Topics You'll Love
  1. The Theory Of Consumer Behaviour — Economics
  2. Cheque [ Economics ]
  3. Economies Scale or Scale Of Production
  4. Rewards To Factors of Production
  5. Events that proved MALTHUS wrong

Comment Area

Login or Create an account to have access to all features of Lectportal.net It takes you less than 2 minutes and you have lots of advantages as a full user of Lectures Portal.
Log In Register

Notice: Theme without comments.php is deprecated since version 3.0.0 with no alternative available. Please include a comments.php template in your theme. in /home/lectport/public_html/wp-includes/functions.php on line 3984

Leave a Reply

Your email address will not be published. Required fields are marked *

Subjects

Blogroll

Ads By Google

Pages