Encyclopedia of Opinion
Question
What are the pros and cons of monopolies?
Position1 of 2

Monopolies are good for the economy

This position holds that monopolies can be good for the economy. It argues that their scale and profits provide the capital and incentives to fund research and development, driving innovation and stimulating capitalism in ways smaller firms cannot.

Supporting arguments · 2

  1. Monopolies stimulate capitalism
    Without monopoly type profits, there would be little incentive to innovate.
  2. Monopolies can invest in innovation
    Perfect competition erodes returns leaving little for R&D