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You will find that we consume monopolies in our daily lives from our electricity to internet service. Why do you think monopolies are classified as a price maker and what are the challenges that monop...

You will find that we consume monopolies in our daily lives from our electricity to internet service. Why do you think monopolies are classified as a price maker and what are the challenges that monopolies will be facing given the lack of competition?

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One of the main challenges of monopoly is that they get to restrict the price in order to maintain a particular output or they actually charge a higher price than before and this can get to tell you that there would be less quantity and they are challenged to meet the socially optimum quantity that the demand should be met completely. They are actually accountable for the reduction in the welfare on the whole and also despite no competition, they should cope up with choices or preferences of customer all in all.

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