What is the benefit from the existence of monopolies, Microeconomics

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Explain how consumers might benefit from the existence of monopolies.

While the standard issue of monopolies having higher prices and lower output that competitive markets might often hold true, there are three major notable exceptions:

1) Natural monopolies;

2) Monopolies which have large benefits of scale; and

3) Large abnormal profits re- invested in R&D and innovation.

 


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