Who benefits the most from a monopoly?

Answer 1

In a monopoly, the entity that benefits the most is the monopolistic firm itself. It gains significant market power, allowing it to set prices higher than in competitive markets, leading to increased profits and potentially reduced innovation. Consumers typically face fewer choices and higher prices, while the lack of competition can stifle improvements in product quality and service. Overall, the monopolist's advantage often comes at the expense of consumer welfare and market efficiency.