Question

advantages and disadvantages for monopolistics competition ?​

Answer 1

Answer:

Monopolies are generally considered to have several disadvantages (higher price, fewer incentives to be efficient e.t.c). However, monopolies can also give benefits, such as – economies of scale, (lower average costs) and a greater ability to fund research and development.

Answer 2

Answer:

The advantages of monopolistic competition include:

a few barriers to entry;

active business environment;

customers can obtain a great variety of products and services since they are differentiated;

consumers are informed about goods and services available in the market;

higher quality of products;

The disadvantages include:

excess waste of resources;

limited access to economies of scale because of a considerable number of companies;

misleading advertising;

excess of capacity;

lack of standardized goods;

inefficient allocation of resources;

impossibility to obtain abnormal profits.