Monopoly is the term which refers to particular person or enterprise which is the only supplier of that specific product or commodity. Monopoly can be established by a government or people by integrating small business sectors.
Explanation:
Advantages
- It always ensures a consistent delivery of products or commodities that have a very high cost
- They have a greater ability to fund research and development and they can do successful research with low cost budgets
- They will have more number of competitors in the international markets
Disadvantages
- Fixing of price is one of their major disadvantages since they have the power to fix prices the consumers cannot question them regarding price fixing
- Reduction in the quality of the products they always have the possibility of providing low quality products
- Since they follow a trade policy the innovations become numb and there will be no development in the innovation of products
