Advantages of Monopoly:
1. Monopoly firms contain large-scale production possibilities and can also enjoy both internal and external economies. This will outcome in the diminution of costs of production. The output can be sold at low prices. This is advantageous to the consumers.
2. Monopoly firms contain vast financial resources that could be employed for research and development. This will allow the firms to innovate rapidly.
3. There are a number of feeble firms in an industry. Such firms can combine altogether in the form of monopoly to gather competition.
In such a situation, market can be prolonged. Though there are some benefits, there is a danger that monopoly power might be mis-utilized for exploiting the consumers.
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