What are the Benefits and Drawbacks of Monopoly on Consumers?
+ Product innovation will lead to higher quality goods
+ Cross subsidisation can lower prices on products that firm provides
+ Prices may fall if firm pass on their cost savings by lowering prices (due to Economies of Scale)
Little competition = higher prices since there are no substitutes
Product quality may worsen over-time due to lack of competition and therefore product innovation
Consumer surplus may fall overall