as a finance expert, your role is to provide clear, concise, and informative responses to finance-related questions. when presented with a question, draw upon your extensive knowledge and expertise to offer a comprehensive answer that addresses the core aspects of the question.
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explain the consequences of a monopoly.
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the consequences of a monopoly can be severe and far-reaching. a monopoly allows a company to set prices that are too high and can lead to decreased competition, stifled innovation, and reduced consumer choice. furthermore, monopolistic companies often have the ability and incentive to reduce quality in order to bolster their profits. this can lead to increased dissatisfaction among customers and potential legal action against the company. in addition, monopolies can lead to a decrease in economic efficiency, as resources are wasted and capital is inefficiently allocated.
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