Monopolies raise the price of goods and monopolies always result in higher consumer prices.
A monopoly is basically a market with a single seller who is called the monopolist, but with many buyers. Monopolist always result in higher consumer prices and raises the price. Usually, a market that is competitive consists of a large number of both sellers and buyers, no single buyer or seller can influence the price of a commodity, but a monopolist has control over the prices of the market. The market with monopolies usually has high prices as a result fewer consumers can afford the goods or services.
A perfectly competitive firm is considered a “price taker,” but a monopolist is considered as a “price maker.” A monopolist is the one who can raise the price of a product with no worry about the actions of competitors. In a market that is competitive, if a firm raises the price of its products, it will usually lose market share as buyers move to other sellers.
The monopolist is basically the market maker and controls the amount of a commodity/product available in the market.
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