Disadvantages of Monopoly:

(i) Exploitation of the consumers:  Consumers pay higher prices than what they would have paid under perfect competition because there is no other place they can access the product.

(ii) Consumer choice is restricted:  The firm is the only producer in the market; therefore buyers cannot choose from a wide range of identical goods as it is the case under perfect competition.

(iii) Creation of Artificial Scarcity:   Most often the typical monopolist tries to reduce output in order to sell at higher prices and enhance its profit.

(iv) Inefficiency:   The monopolist faces no challenge as a result of absence of competition.  In other words, there is no urge for the firm to adopt cost-saving production technique for efficient use of its resources.