The reason why monopoly is harmful is that it includes disadvantages such as price-fixing, low-quality products, lack of incentive for innovation, and cost-push inflation.
What is the meaning of Monopoly?
A monopoly is defined as the dominance of an industry or sector by one company, to the point of excluding all other valid competitors.
A seller is interested to create a monopoly in the market because they can have a dominant position and enjoy the powers of the monopoly. This results in power remaining in the hand of the dominant marketer.
Therefore, this is the reason monopoly is harmful to an economy.
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