Monopoly market advantages :

• The nature of goods that do not have close substitutes makes the monopolist company not
need to spend a lot of money on promotion and advertising so that buyers can
differentiate their products
• In a natural monopoly, additional sellers will actually make production unable to reach
economies of scale so that monopoly will actually increase efficiency in production.
• With a government monopoly it can protect natural resources that are important to
society
• Protect individual property rights so as to encourage innovation

Lack of a monopoly market :

• Because producers can set prices by reducing or increasing the amount of production, it is
possible that production is not carried out optimally and efficiently
• Buyers cannot move to another seller even though the price set is high
• Profits are concentrated in producers because consumers have no choice but to buy from
these producers to meet their needs