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From course:

Economics A Level (DONEEEEEEE)

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Question:

What further Disadvantages, apart from not wing Productive or Allocative Efficient, do Monopolies posses?

Author: eric_galvao



Answer:

-No Need for Monopolies to Innovate or Change to Consumers Preferences, so chance of Ignorace May Build up -No Need to Increase Efficiency - X-Inefficiency is High -Consumer Choice becomes restricted as no other Firms in the Industry -Monopsonist Power used to Exploit Suppliers


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