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Path: p QUESTION 39 3. Explain clearly why Monopoly markets are inefficient Please use the relevant economic concepts in your discussion. (2 points) TT! 쫓 Paragraph : Arial 3 (12pt) ::-·-·T· /▼e : HTML CS ath:
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Monopoly market tend to be inefficient in every way because where monopoly exist there is higher price of product as firm is in limited of number and lower amount of output being produced. Allocation of product is inefficient because poor people will not able to buy expensive product. Also, barrier to market entry is higher and monipoliest firm would try to higher those barrier, this increases the average cost of product also.

In monopoly market firm easily manipulate market they will charge higher prices and will sell lower quality products since there are higher barriers to market entry.

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