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Essay Details:
Essay text:
If the
benefits of perfect competition outweigh the benefits of monopoly then a
monopoly can be regarded as ?harmful' since the consumers are not receiving the
maximum possible utility for their purchases.
Monopolies are criticised for their high prices, high profits and insensitivity
to the public. Some governments therefore, in the light of these protests,
advocate policies relating to monopolies, in order to regulate their power in
favour of the public's interest.
There are several reasons why monopolies may be against the public interest. It
is claimed that monopolies produce at a lower level output and charge a higher
price than under perfect competition in both the short run and the long run...
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