What are the consequences of a market transforming into a monopoly?
The price tends to increase and the quantity produced and sold tends to decrea...
What are the consequences of a market transforming into a monopoly?
The price tends to increase and the quantity produced and sold tends to decrease. The monopolist has the power to set the price. The maximization of the monopolist's profits often goes against the interests of the rest of society. Governments can limit the actions of monopolies by prohibiting one company from obtaining a very large portion of the market or by establishing maximum prices.
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