If a simple market for a good/service is moving towards being a market like a mo

Question

If a simple market for a good/service is moving towards being a market like a monopoly, what would be the outcome from both a producer and consumer standpoint? Who would benefit more out of this? Thanks If a simple market for a good/service is moving towards being a market like a monopoly, what would be the outcome from both a producer and consumer standpoint? Who would benefit more out of this? Thanks If a simple market for a good/service is moving towards being a market like a monopoly, what would be the outcome from both a producer and consumer standpoint? Who would benefit more out of this? Thanks Thanks

Explanation / Answer

In case of a monopoly, the producer will benefit by being able to charge high price. The consumer will suffer by having less flexibility in choosing the product and will not be have an elastic demand. He might face price rigidity.

Clearly the producer will benefit more as he would be the sole suppier in the economy, he will have some degree of control over the price or the quantity supplied.

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