11 Disadvantages Of Monopoly

1. Exploitation of consumers 2. Poor level of service. 3. In general, a monopolistic market structure would produce less output and charge higher prices which leads to a decline in consumer surplus and a deadweight welfare loss. 4. Excess Profit 5. Potential of supply to be limited - less choice. 6. Dissatisfied consumers 7. Lack of competition may lead to low quality and out dated goods and services. 8. The higher prices would exploit low income consumers and their purchasing power might be transferred to shareholders in the form of dividends leading again to unequal distribution of income.