There really
    aren't any, except in certain rare circumstances.
Monopolies are great for
    business owners; monopolies restrict production and raise prices, leading
    to much higher profits. But both of those things are extremely bad for
    consumers, and in fact it turns out that the harm to consumers is almost always larger than the
    benefit to business owners, to the point where we could literally just take some money from
    consumers and hand it to business owners, then establish a competitive market, and everyone
    would be better off than they were under the monopoly. (Not that we necessarily
    should, but we could, in
    theory.)
Competitive markets are provably optimal for consumers in the long
    run, as they produce the most efficient amount of goods and sell them at the most efficient
    price. 
There are basically only two circumstances where monopolies can be
    beneficial for consumers. 
The first is if there is an economy of
    scale. If the good is actually produced more efficiently in larger quantities, then a
     
Friday, 6 May 2011
What are the benefits for the consumer of a monopoly market?
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