monopolistic business - it's disadvantages

[Axis]

just as a monopolistic business has it advantages so it also have it disadvantages as well.

in a more monopolistic business there is a tendency that the efficiency rates will reduce this is as a result of lack of competition among businesses and so therefore the efficiency will decline.

and just ask in a monopolistic business there is an increase in supply but when did consumers don't come in demanding for this goods and services it can lead to overproduction and can result to waste which can make such businesses lost money.

due to the fact that only one business runs a particular kind of goods may be in such area the freedom of choice can be hindered that is the customers won't have the avenue in making your choice due to the fact that only one business that produces goods is available.

exploitation of the consumers or client is mostly common in a monopolistic business. and also it can lead to in efficiency of such a business.

and so therefore in a monopolistic business and entrepreneurs should be mindful of what he or she will produce so that he will not go waste or over produce such a goods and services which might lead to waste and loss of money