Disadvantages of Monopoly:
1. Monopolist always charges a big price that is higher than the competitive price. Therefore a monopolist exploits the consumers.
2. Monopolist is interested in acquiring maximum profit. He might limit the output and increase prices. Therefore, he creates synthetic scarcity for his product.
3. A monopolist frequently charges diverse prices for similar product from different consumers. He takes out maximum price according to the capability to pay of different consumers.4. A monopolist employs large-scale production and vast resources to promote his own selfish interest. He might adopt wrong practices to establish total monopoly power.
5. In a country conquered by monopolies, wealth is concentrated in the hands of some people. It will lead to disparity of incomes. This is against the principle of the socialistic pattern of the society.
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