Monopolies over a particular commodity, market or aspect of production are considered good or economically advisable in cases where free-market competition would be economically inefficient, the price to consumers should be regulated, or high risk and high entry costs inhibit initial investment in a necessary sector.

Can monopoly be good for society?

Traditionally, monopolies benefit the companies that have them, as they can raise prices and reduce services without consequence. However, they can harm consumer interests because there is no suitable competition to encourage lower prices or better-quality offerings.

Can a monopoly be good for the economy?

Firms benefit from monopoly power because: They can charge higher prices and make more profit than in a competitive market. The can benefit from economies of scale – by increasing size they can experience lower average costs – important for industries with high fixed costs and scope for specialisation.