Is monopoly ever justified? Why or why not?
Usually, monopolies are associated with various drawbacks, including low output and exorbitant prices. On the same note, other schools of thought perceive monopolies as the deterrents of social democracy and free market libertarianism. A society devoid of any structure or governing rules shifts to a monopolistic formation, where all the powers are transferred to one or a few nobles. Looking at the issue from a different viewpoint, however, the benefits of monopolies may significantly outweigh their demerits. Some of the notable justifications of monopolies include the fact that they are in a better position to sponsor development and research and also reap the benefits of lower average costs. To explain the aforementioned arguments further, the supernormal or excessive profits generated by the monopolies can be used to fund projects that require enormous investments. Moreover, increased output, which is one of the key features of monopolies, will translate to reduced production costs. ...