What are the advantages of monopolies for consumers?

Asked by Patrick Kennedy on March 20th, 2012 @ 12:57 a.m.
Sign in to answer this question

1 answer to this question

The most relevant answers filter to the top...

Although much of economic theory focuses on the disadvantages of monopolies, there can be opportunities where monopolies actually benefit the consumer. 1) Because the monopoly will be the dominant force in the industry, it will be able over time, to produce economies of scale. Given its ability to lower fixed costs over time due to its rising efficiency, it will have the power to sell low cost goods to consumers. 2) Monopolies may face international competition and thus be forced to price their goods more competitively as consumers would otherwise source their goods from foreign markets. 3) Given their access to very high profits, monopolies can invest in a lot of research and development that will eventually allow them to produce their goods more efficiently and at a lower cost. 

Answered by Chido Munangagwa on April 25th, 2012 @ 11:04 a.m.