Monopolies can limit competition and harm consumers from "summary" of The Economics Book by DK
Monopolies can be harmful to consumers and competition in markets. When a single company dominates a particular industry, it can restrict competition by setting high prices without fear of losing customers to rival firms. This lack of competition can lead to reduced innovation and efficiency as the monopolistic firm has little incentive to improve its products or lower prices. Consumers suffer as a result of monopolies because they are forced to pay higher prices for goods and services. Without the pressure of competition, monopolies can charge whatever price they desire, leading to decreased consumer surplus. This means that consumers h...
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