Question

Q) Do you think Monopoly business practice is so bad for the general public's welfare? why? or why not? Explain based on cost and benefit analysis of social welfare.

Would be greatly appreciated if the answered in 5sentences by your own, not copy and pasted

Answer 1

Q) Do you think Monopoly business practice is so bad for the general public's welfare? Why? Or why not? Explain based on cost and benefit analysis of social welfare.

A monopoly gets established when there is existence of no competition in the market and the consumers purchasing a product have only one choice to buy the products on offer by the company.

The trade restrictions which occur can be due to certain patents or otherwise because of government restrictions on the industry so as to disallow private participation.

In most countries across the globe, monopolies are existent today in sectors which are government controlled only such as railways, postal services, defense, water etc.

In these sectors privatization is discouraged to allow for government to have a larger control over the assets that directly impact social welfare of the society at large. It is generally considered a boon for the economy to have monopolies in certain restricted industries only since privatization of these critical resources would lead to a rise in the cost which not most people would be able to purchase.

That said, private monopolies or in areas in which government intervention is extremely bad for the society. This causes an organization which tends to be careless and not bothered about customers but can increase prices manifold in case of critical industries such as healthcare and get away with this since they have patents in place such practices should be discouraged.

Conclusion:-

Thus, the conclusion which can be offered from the discussion is that, for public welfare and justified distribution of income, monopolies are necessary in certain critical sectors but should not be extended to private organizations and sectors in which it is important to curtail the same.

Please feel free to ask your doubts in the comments section