Question

Give possible reasons for the poor performance of the monopolies​

Answer 1

Answer:

1) Higher prices than in competitive markets Monopolies face inelastic demand and so can increase prices – giving consumers no alternative.

2) A decline in consumer surplus.

3) Monopolies have fewer incentives to be efficient.

4) Possible diseconomies of scale.

Explanation:

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Answer 2

Answer:

Concept:

Monopolies is a market condition where we have a single or only few sellers. there are a number of buyers.

Solution:

1. The price level is set by the few sellers in the market.
2. Since there are less sellers who set the price, the prices are generally set high.
3. There is no competiotion in the market.
4. The buyers are the price takers.

These are the possible reasons of poor performance of monopolies.