How do monopolies affect the price of goods?
Answers
Price, Supply and Demand. A monopoly's potential to raise prices indefinitely is its most critical detriment to consumers. Because it has no industry competition, a monopoly's price is the market price and demand is market demand. ... As the sole supplier, a monopoly can also refuse to serve customers.
plz..mark as brainlist
The East India company took advantage of the disintegration of the Mughal Empire to acquire increasing political domination and control over different parts of the country. After poliyical conquest, Indian weavers were also employed directly by the company. In that case, they were forced to produce cloth at below market prices.
Financial resources had to be raised in India for anotherbreason. Indian money was needed to purchase Indian goods. This could be acquired either by sale of British goods in India or by export of gold and silver to India. British industrial products could not compete with Indian hanficraft products till the beginning of the 19th century.
Both the objectives - the monopoly of trade and appropriation of government revenues were rapidly fulfiled with the conquest first of Bengal and parts of South India. Indian traders were gradually ruined and replaced, while the weavers and other craftmen were compelled either to sell their products at uneconomic rates or to work for the company at low wages. The weavers were not ruined at this stage by British imports but because of tge company's monopoly and their exploitation by being forced to produce for the company under uneconomic conditions.