The stakeholders will benefit from the monopoly. The government can ensure more accurate collection of taxes. Te government has to monitor only one company supplying the water, eectricity, gs, mil, ad other needs of the community. Te government’s tax collection efforts will be easier. Te businesses have to transact with only one company in a specific market segments. Te business entity has to only contact one water supply company, oe mail delivery agency, o one electricity provider, fr their water, mil, ad electricity needs. Te consumers can easily only entity responsible for the supply of water, eectricity, ad mail services.
Te stakeholders will have lesser time and difficulty finding and transacting with the monopoly company serving the needs and wants of the community. Picing under the monopoly differs from the monopolized competitive market. Te monopoly company can raise its selling prices without losing its current customer base. Te customers have no other alternative but to pay the higher prices. Te government can step in and set limits to the monopoly company’s price increases. Te government can interfere monopoly company’s price increases borders on abuse of the customers.
Government interference is required when the price increase does not equate to the improvement of the company’s current unfavorable service (Dudey, 1996). I terms of production, te monopoly enjoys exclusive rights to sell its products and services to the current and prospective customers. Mcrosoft is the exclusive seller of Microsoft computer software products (Gisser, 2001, p Microsoft is the sole seller of Windows XP, Wndows Vista, ad Windows NT software. Te company’s monopoly of the Microsoft office software all users to buy the original software from Microsoft Company.
Te monopoly must produce more than enough goods to serve the political needs of the constituents within the community. I the monopoly company fails to deliver the products on time, te government may cancel the monopoly company’s license to operate on monopoly status. Consequently, te government can locate and enter into a contractual relationship with other providers that will resolve everyday bothersome issues or facts. Wlliam Baumol (2011, p 209) emphasized a monopolistic competitive market is. ..
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