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Advantages and Disadvantages of Monopoly Firms


Discuss whether or not an economy benefits from firms which are monopolies.


Market Structures and Competition

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I. 🍃Introduction
- Definition of monopolies
- Importance of analyzing their impact on the economy

II. Positive effects of monopolies
- Ability to gain more profits
- Increased reinvestment
- More choices from the company
- Total demand increases
- Economic growth
- Expansion of production
- Employment opportunities
- Decrease in unemployment
- More R&D
- More innovation
- Higher quality
- More productivity
- More exports
- Improved current account position

III. Negative effects of monopolies
- Lack of competition
- Complacency
- Less productivity
- Less innovation
- Higher prices
- Inflation
- Exploitation of consumers
- Less choice
- Lower quality

IV. 👉Conclusion
- Summary of positive and negative effects
- Importance of regulating monopolies to balance their impact on the economy.

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