Consequences of Monopoly: 3 Consequences | Markets | Economics
The following points highlight the three main consequences of monopoly. The consequences are: 1. Technological Efficiency 2. Monopoly and Innovation 3. Allocative Inefficiency. Consequence # 1. Technological Efficiency: Whether a monopoly will be technologically efficient cannot be determined by theory alone. It is possible that MR=MC=minimum ATC, as shown in Figure 8. however, this need not be the case. If [...]