Question
State four disadvantages of a monopoly market structure.
Answer
(i) Operate at excess capacity i.e. below optimum capacity.
(ii) Charge higher prices.
(iii) Poor quality goods and services.
(iv) Limit variety of goods in the market / lack of freedom of choice.
(v) May limit the output (create shortage).
(ii) Charge higher prices.
(iii) Poor quality goods and services.
(iv) Limit variety of goods in the market / lack of freedom of choice.
(v) May limit the output (create shortage).
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