Monopolies can be criticised because of their potential negative effects on the consumer, including:
a. Restricting output onto the market.
b. Charging a higher price than in a more competitive market.
c. Reducing consumer surplus and economic welfare.
d. Restricting choice for consumers.
e. Reducing consumer sovereignty.
- *Consumer sovereignty
- Resources are allocated towards the satisfaction of the consumer, who is 'king' (sovereign) - firms can only survive if they consistently satisfy consumer demand. The more they satisfy the consumer, the greater their profits.