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The lack of competition within a monopoly means that

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The lack of competition within a monopoly means that monopoly set their prices. Pure competition in the market allows producers to compete fully when selling similar goods. Therefore, the absence of competition within a monopoly is an indication that the monopolists came up with their own prices. In a monopoly, a company ends up being the dominant market force that provides a particular service or product in a way that meets the demand in the market. The monopoly status is attained when the company gains sufficient leverage to push other competitors away from the market.

Monopolies usually happen where there is high capital, a patent, the need for a specific product or service or government involvement. Due to the lack of competition that exists in an ideal market, such a situation leads to the setting of own prices. This is especially because customers have no other alternatives to turn to. Customers end up paying more when buying from monopolies.

3 years ago
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